Canterbury Market Update - May 2024
As we head steadily towards winter, and the traditional slowing of the market, it appears to be doing anything but. Sales counts are up, days to sell are down and while the market prices aren’t rising, they are remaining relatively stable across most towns in the region. Market sentiment also remains steady, with a reasonable level of enquiries coming to us.
Who’s house hunting right now?
Owner-occupiers and first home buyers still remain the main buyer groups in the Christchurch market, with Timaru seeing a surge in first home buyers. This buyer group still remains dominant in much of the Canterbury market, due to the price and range of properties available.
Open home attendance also remains steady across the region, and auction attendance stayed strong in Christchurch and Timaru. Many real estate agents are reporting that most vendors are happy to adjust their pricing exceptions to meet the market, and this means that there are some great buys out there -especially for our first home buyers.
As we head into winter, it will be interesting to see how the market fares, as we often see a dip nationally in sales during the cooler months. However with a bit of a quieter market during 2023, the market sentiment is that it will likely remain steady, and perhaps even more active than normal for this time of year.
Median price remains stable in most towns.
The median house price for Canterbury in April was $670,000 which is up 0.8% on this time last year. Within this, different towns have seen quite different pricing changes. Below are the average house prices compared to April 2023.
Bear in mind these can fluctuate quite rapidly depending on the price of the most recent sales - especially in the smaller districts where only a handful of houses may sell in a month.
Christchurch City - average of $665,000, down 0.6%
Ashburton - average of $517,325, down 15.9%
Kaikoura District, average of $626,000 - no information from last year
Hurunui District - average of $720,000, up 23.1%
Mackenzie District - average of $600,000, down 14.3%
Timaru District - average of 490,000, down 2.8%
Selwyn District - average of $850,000, up 6.4%
Waimakariri District - average of $710,000, up 7.6%
Waimate District - average of $317,500 - no information from last year
Regional sales information
Across Canterbury in April there were 941 sales. This is a 28.4% increase compared to the 733 sales recorded in April 2023, but a slight decrease from the month prior.
The current average time a property sits on the market right now is 33 days, which is averaged out across the Canterbury region. This is down 4 days from April 2023, and has dropped quite significantly since the start of the year when properties were taking an average of 45 days to sell.
Market impacts
Interest rates still prove to be a deciding factor for many looking to buy a home, with no sign of any big drops happening soon. Market experts are still predicting rates will start to drop more significantly towards the end of 2024 or Q1 of 2025.
The high cost of living also proves to be another factor in the sale and purchase of properties, with increases in food, petrol, and rates all having an impact on market sentiment.
Come the 1st of July, we will see what market impact the changes to the Brightline test will offer. We expect to see an uptick in investor activity when these changes take place, and this could come at the detriment of first home buyers. Those who are serious about buying a home in the next few months, may want to get prepped sooner rather than later.
Changes to the costs of building could also have an impact on the market. The government recently announced a review of building costs and that cheaper building materials may become readily available. This could be a huge help to many looking to build a home in Christchurch, which sits currently as the second most expensive city in NZ to build in.
Overall, the local market remains steady and relatively strong for this time of year. Enquiry and interest remains stable, and with a number of changes to come in later this year, now is still a great time for many who are looking to purchase a home.
We encourage you to get in touch with our Christchurch mortgage advisors. We work with clients Canterbury-wide to help you get prepared in the lending space, so you are ready to go when your dream home comes along. Feel free to reach out to our team with any questions you might have around market conditions, or click here to start your home buying journey with us.
Source: REINZ