Hot off the press from the Harcourts MarketWatch, the Christchurch market has broken yet another record…
“For the first time in history the average selling price for a residential property in Christchurch [sold by Harcourts] is over half a million dollars, sitting at $507,681. This is up 19% on the same time last year and has jumped by 2.7% from February’s high.
Total listings are down by 16.5% and written sales are up by 13.7%, which indicates how competitive the residential market is. Demand for housing is outstripping supply.
Last month Reserve Bank Governor Graeme Wheeler increased the official cash rate to 2.75%, saying rising interest rates will have a moderating influence on the housing market. This is unlikely to be the case in Christchurch, where our rapidly growing population will continue to push prices up.
The same can be said for the loan to value restrictions (LVR),which have failed to have an effect on prices in the city. Theonly outcome is it is now more difficult for first home buyersto enter the market.
Auctions continue to gain traction in Christchurch, with auction numbers up 4.7% on last year. Vendors are seeing the value in letting the market determine price, rather than fixing, when demand is so high.”
Further to my comment from a couple of weeks ago where we mentioned that the Canterbury market was catching its breath – I’d say justifiably with these stats!
I guess the bottom line for the local Christchurch market is that the underpinning factors of high demand and a flush local economy continue to stimulate and drive these growth figures.
The message for any local purchaser, whether it be a first home buyer or an experienced investor looking to build their portfolio, is just do it, the timing is ideal!