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 Leave a Reply. |
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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