Christchurch Metro MarketWatch

Christchurch Metro Overview: Housing stock across Christchurch is at an all-time low, with 20.8% less properties available to buy than there were a year ago.

Total new listings in September are also down by 10.9% on the same time last year, which is unusual given the start of spring traditionally heralds an increase in the number of listings. Now is a good time for vendors who are considering selling to come forward. Also those contemplating getting into the market should do so now. As time goes on it will only become more difficult.

Meanwhile, the number of sales has increased by 6.2%, with auction rooms filled to capacity with buyers and sellers every week. Multiple offers on priced listings are a regular occurrence.

We have not yet seen any impact from the Government’s loan-tovalue restrictions. There was not a last minute surge of first home buyers trying to enter the market before the new rules came into force on 1 October. Competition for property is high and houses sell quickly regardless, meaning it would be difficult for there to be a sudden surge in sales.

Next month’s statistics will indicate whether there will be any significant changes to the market post the LVR rules being tightened. It is unlikely the Christchurch market will be tempered as it is driven by adversity and the housing shortage will continue for some years to come.

The average house is now selling for $448,390, up 9% on the same time last year. With net migration into Christchurch sitting at around 261 per month, it is likely prices will continue to be driven up until the rebuild catches up with demand.

ENDS

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