Canterbury Market Update - March 2024

Summer has come to a close, and with that the property market begins to wake up again from its summer slumber. With many sellers choosing to hold off on selling their properties over the Christmas/summer holidays, February and March usually sees a flurry of activity, with properties hitting the market. Right now, owner-occupiers are the most active in the Ashburton market, whereas Timaru sees a surge in first-home buyers, and Christchurch City is seeing interest from both groups

Vendors are feeling more confident in the market, with price expectations beginning to rise, as does confidence in both the real estate market and the economy. From an industry perspective, we are beginning to see more and more enquiry in regards to lending and purchasing property in 2024.

 

MEDIAN HOUSE PRICES

For January, the median house price was $649,000 across the Canterbury region. This was actually down 3.1% on the month before, and up 1% on this time last year. Prices in the regions saw some fluctuation depending on location. 

 

Christchurch City: The median house price is $650,000, up 3.8% on January 2023

Ashburton District: The median house price is $498,500, up 8.8% on January 2023

Selwyn District: The median house price is $775,000, down 3.7% on January 2023

Timaru District: The medium house price is $516,000, down 3.6% on January 2023

 

MARKET ACTIVITY

January saw 472 sales across the Canterbury region. This is down significantly compared to December but this is always expected due to the holidays and the seemingly informal ‘closedown’ of the country for a good part of January. This figure is up 13.5% on January 2023, so this shows that the market is starting to become a bit more active, with more sellers listing their properties, perhaps due to a reinforced confidence in the property market.

The current timeframe for properties to sell in the Canterbury region is an average of 45 days to sell. This will fluctuate from town to town, with some properties selling much quicker than this, especially in the city. 

Open homes are seeing a steady uptick in the number of people attending, with auctions becoming more and more popular. 

 

INTEREST RATES

Interest rates are still a hot topic, with many experts debating on what they will do throughout the rest of 2024. Without having access to a crystal ball, it’s impossible to predict exactly, however it’s currently looking like interest rates are peaked to peaking. Any rise will likely be minimal, before we see the rates likely begin to fall later in the year. As always, what type of rate you lock in is variable depending on your circumstances and long term goals, so before you renew your loan be sure to get in touch for personalised advice. Generally we are recommending locking in for 6-12 months, but again, this can vary depending on your unique situation. 

 

DTI’s & LVR’s

The Reserve Bank is planning to reintroduce new rules around DTI ratios (debt to income) in the middle of the year. These rules will affect how much money households can borrow based on their income, with the goal being to make sure borrowers don’t take on more debt than they can afford. These changes are likely to impact investors more than those who are buying homes to live in. It’s also likely it will have an effect on self-employed borrowers, so this is something to consider if you are self-employed and looking to buy this year. 

There's also a possibility that LVR (loan to value) rules might become more flexible. This could be good news for people who have less than a 20% deposit and are trying to buy a home.

If these changes happen, it would mean that for investors, only 5% of loans can go to people with less than a 30% deposit (currently it's 35%). For those buying a home to live in, 20% of loans can go to people with less than a 20% deposit (up from 15%). This will likely make it easier for people with smaller deposits to get a loan. Right now, there won’t feel much of a difference, but it's something to keep in mind if you're thinking about buying a home in the second half of the year.

As always if you have any specific questions around market activity, are looking to buy a property, or just would like general lending advice, then don’t hesitate to reach out. With offices throughout Canterbury, South Canterbury and Christchurch, our local mortgage advisors understand the regional markets and can offer up accurate advice. Get in touch on 0800 1 AGILE, or start your journey with us by clicking here