Christchurch average prices rise over half a million

Please find attached March residential property market analysis for the Christchurch Metro area from New Zealand’s largest real estate group, Harcourts.

For the first time in history the average selling price for a residential property in Christchurch 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.

--

Christchurch Metro Overview:

For the first time in history the average selling price for a residential property in Christchurch 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. The only outcome is it is now more difficult for first home buyers to 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.

Christchurch_MarketWatch_April_2014.pdf

© Scoop Media