The Real Estate Institute of New Zealand has just released the latest sales data for the month of May. As everyone would expect, the results reflect the very unusual situation the world and New Zealand have found themselves in following the COVID-19 outbreak. With our economy just stepping out of lockdown (into level 3 and level 2), and with restrictions on how all businesses operate, it is no wonder market activity is lower than we would normally expect. In a lot of respects, it is amazing there were as many sales taking place at all. But Christchurch is a resilient city and we are not usually prone to wild fluctuations when we are in normal circumstances. However, as we all know we are no longer in normal circumstances so my expectations are that we will see some fluctuations occurring over coming months as the full effects of the COVID-19 crisis start to hit home. The REINZ May statistics tell us that within our fair city, there were 365 sales, with a median sale price of $477,500, and days on the market is now 56 on average. So, what does this all mean? First off “Days on market”. Typically, the usual “days on market” time hovers around 30 odd days +/- a day or so. This measurement starts the day a property is listed for sale and runs till the day the property is considered legally sold (the unconditional date). As you would expect, any property on the market at the start of lockdown or coming on the market during lockdown, had no chance of selling until Real Estate agents were able to go back to work. Hence the reason we see more days on the market currently. Firstly, don’t worry about the sensational headlines like “Property taking longer to sell”, base your decision to sell on what your Real Estate agent and their agency are saying. Ask them where you can see the most recent statistics for how the market is performing. Secondly “Number of sales”. Christchurch in normal times on average for the month of May would sell sells around 600 properties. This May we recorded 365 sales; and I have to say that this number feels impressive after what everyone has been through. There is no doubt that there was a lot of pent up activity as a result of the lockdown. This was apparent immediately as the public were allowed to get out and about, to view homes and open homes in the initial available weekends. Regarding sales figures for this period, it is simply too early to identify where we stand. Thirdly “Median sale price”. The latest figures indicate that the median has jumped to $477,500. This would predict that prices are holding at the moment, and I suspect the pent-up activity generated by lockdown and a shortage of stock has created pressure on property values. So where to from here? It is probably fair to say we are still seeing the flow on effects from buyers who were artificially shut down over the lockdown period. When I look at Harcourts figures for the first weeks of June there is still very good activity happening. Winter would usually be seen as a quieter time where property sales are concerned, so with everything else that has happened, some further slowdown should be expected. However, I would have to say that currently we are still seeing a lot of activity in the marketplace and open homes are busy. Will it continue or will it drop away? No one really knows, yet there is still quite a bit to play out in our economy that will have an effect. However, we can be optimistic and say that there are a lot of positive signs out there. The historically low interest rates and the Government stimulus packages should keep the economy moving. The saving grace are our primary industries, once again bringing hope to our economy. There has been huge amount of interest from people overseas in New Zealand property and online activity from overseas is through the roof. This leaves us in no doubt that expats are looking to return home.. After all, if you were locked down with your family in some other part of the world, I suspect New Zealand would be looking quite attractive at the moment. Whatever the next months bring to our country and our city, one thing you know for sure, is that Harcourts has been with you for over 100 years and through several times of crisis. We are with you again through the current one. That is why we are very proud to be associated with and the main sponsoring partner in the POP-UP PENGUINS promotion coming to our city soon. Keep an eye out for the colourful penguins towards the later part of the year when our local schools and artists have finished painting and designing these impressive statues for your viewing pleasure. Source: Jim Davis - Christchurch & South Island Regional Manager When moving with pets, keeping the four-legged family members happy is an important part of a successful shift. And with attention to a few small details your pets can be safely and happily transported to your new home. Moving with pets starts with open homes Good pet care around moving house doesn’t just start once you’ve signed on the dotted line. It’s a good idea to consider your cats and dogs as soon as you list your home for selling. Keeping your property open-home ready obviously involves your pets as you need to ensure is free of animal related mess. If you have a dog try and make time to give them extra walks and park visits so they’re less inclined to be destructive around the house, upsetting your best laid open home plans. Always make sure your dog is away from the property during open homes as even small, friendly dogs can make some visitors anxious. And having loads of strangers traipse through their territory can be very stressful for dogs and cats. When it comes to cats, they’ll most likely have a secret spot they will sidle off to during the rush of open homes, but if you have a particularly scared cat you could consider placing them in a cattery for a day. More realistic is to just ensure they have a safe place to hide out and they have plenty of food and water in a discreet place outside. And make sure you call them and try for lots of reassuring cuddles when the open home is after. Moving day
Try and keep pets away from the hustle and bustle of packing as they do pick up on any unsettled vibes and may decide to hide out where you can’t find them till the fuss is over. If possible consider moving cats and dogs into a boarding facility for a day or two while you get the last packing and loading done, then collect them on the way to the new property. Talk to your vet about how best to calmly transport your pets between your old home and new. Depending on the distance you’re travelling and the age or disposition of your pet they may recommend some sedation to ease the stress. Once you arrive at your new home it might be tempting to set your pet free from its cage to explore, but in fact new spaces can be overwhelming for animals. Set aside a room for your pet that they can stay in as they acclimatise to their new environment. Just keep in mind that if your pets don’t get along now is not necessarily the time to lock them in a room together! Make sure they have somewhere secure to sleep, like a familiar blanket or cushion in a box or on a familiar chair as well as plenty of food and water – and, for cats, a litter box. Make sure you visit them often for reassuring cuddles and to make sure they’re eating, drinking and using the litter box, but if they’re reluctant to come out from under that bed don’t force them. They’ll gradually come around once they get used to their new surroundings. Take dogs outside for toilet breaks accompanied by you, on a leash if necessary as they get used to the new property. Although it might seem a logical thing to do, when moving with pets it is not the time to do a big wash of your pets’ blankets or bedding. The familiar smell of a favourite blanket will be a big sign to them that your new house is their home now. Use your pet’s behaviour as a guide to when they’re ready to explore more further afield. If they still run and hide whenever someone comes into their room, they’re not ready. But if they’re friendly and relaxed then you can start to expand their access to the rest of the house. With cats you can gradually move their litter box further afield until it’s outside. If it’s possible locate your pet’s feeding and sleeping spots in areas similar to your previous home. As they venture outside for the first time let them explore at their own place with you nearby. In the end you will be the most familiar thing that lets your pet know this is now home so spend some time with them! Post originally featured on the Harcourts New Zealand Blog: Keep your pets happy on the move. It is amazing how quickly things can change in our lives. For a period there, it was like being in the Twilight Zone. Everything centred around the 1pm daily update, and that brief bit of outdoor daily exercise where distance made us like pariahs to each other.
It’s incredible to think how fast it was to turn the lights off. Now we have to see what it’s like turning them back on. Where does the real estate market sit amongst that? While the market continued on throughout lockdown, it wasn’t the same. And so, in REINZ’s Christchurch housing numbers for April we do see some changes. A shortage of properties dominated the report, and a total 126 sales was a far cry from the previous month—but that’s to be expected in lockdown. The median house price fell slightly to $455,000 and average days on market lifted to 34, both due to physical movement restrictions. But that was then. This is now. We’re coming out of a time when everyone has been hugely home focused. Some of us turned towards completing long-overdue DIY projects, and for others, seven weeks self-isolating at home with the family has provided the motivation and realisation to purchase a larger property without delay. Monetary stimulus from the banks providing historically-low interest rates ; (below 3%, and possibly lower by the time you read this), has created a perfect environment in which buyers can break the renting cycle, and secure a lifelong dream of owning a property in New Zealand.Buyers are already making their presences felt off the back of this. Sellers can be confident that they will see high demand for their properties, and this is clear from the large volume of attendees at our Open Homes across the city. Unlike other parts of the country which are more reliant on tourism and international students, we are in a good place for ongoing price resilience. So while we’re still close to that Twilight Zone, the real estate market adapts, both in the short-term, and in the bigger picture. There are now opportunities to buy and sell that simply did not exist three months ago. Now’s the perfect time to seize them. |
James Twiss
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Greg Roberts
Licensed Business Owner of Harcourts Four Seasons Realty 2017 Ltd Archives
September 2020
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