Christchurch Property Market Comment by Jim Davis, Harcourts South Island BDM

Traditionally as we head into winter we expect the headlines and market comments to be all about the Christchurch property market hunkering down during the colder months, but this year it’s different.

For several months now, I have been talking about Christchurch’s strong steady property market, its not rampant, but it has been consistent, and the latest REINZ figures for the month of May show this strong steady trend is continuing but potentially with underlying pressure. The recently released results for May tell us there were 706 sales in Christchurch city, the median price was $457,500 and the average days on the market 35 days.

Compared to the previous month this represents an increase of 22% volume lift over the previous month, as well as had a slight 2.5 % increase in the median sale price.  The movement in the median sale price is not significant in my opinion as the median has hovered in and around this level for close to a year now, hence the steady Christchurch property values. The lift in sales volume is however a strong indicator of the interest still being shown in our market currently, even during winter.

When we look at the data nationally we see that this market strength is being felt across the whole country, with the national median sale price up to a record high and total sales volumes across the country during May also up slightly on the same time last year.  The national increases are not solely because of another boom in Auckland, their market had lifts in volume just like Christchurch, but their property values have remained relatively steady.  This time the lifts in values have occurred in a lot of the regions.  Overall though the strong sales volumes are the reason the real estate market once again features prominently in the national headlines and psyche.

Getting back to Christchurch property, I expect to see the slight lift in the median price continue over the coming months. I expect this result simply because there is a real shortage of listed property across our city and nationally.  Just look at the Harcourts pages in the press each weekend and our current Bluebook, advertised volumes of listed property is down.

With newly listed stock levels slowing, interest and sales volumes remaining strong then it is highly unlikely we will see property prices drop away in the short term.  Having said that, I am not expecting rapid price growth either, we seem to have a very educated buying public currently, who by in large recognise that the market is steady and are not prepared to go silly price wise; consequently, we are not seeing much in the way of price movement.

Talking with our sales consultants across the city there is no doubt the current buyers in the market are mixed and diverse.  There is a strong growing number of first home buyers in the market presently, a combination of steady property values, greater availability of funds, and greater flexibility for the banks to loan.

Noticeably another segment active in Christchurch property market now are the out of town buyers looking from other parts of the country, indications are that we are seeing good interest from this segment of the population currently for some reason, over and above the regular Christchurch buyer and seller.  The opportunities and the changes now going on in our beautiful city are obviously encouraging a lot of people to relook at us. Imagine what it will be like when the Square and the Cathedral are finally sorted, let alone a Stadium, Convention Centre etc etc.

What does all this mean at the moment? Basically, it may be winter, it may be cold, but with property listings slowing, strong interest, good sales volumes, and values holding, its not a bad time to sell. Forget what you have heard, forget what others tell you, let the statistics talk for themselves. If you have a reason to look at selling in the near future, then now could be a great time. Buyers have limited fresh property coming to the market for them to consider, so when new stock is listed it will inevitably attract good interest, current sales volumes attest to this.

Now is a great time to stand out from the crowd because I have no doubt we will see a surge of property in the spring months when everyone decides to move.  One thing is for sure – there is great interest in Christchurch now.

 

 

Trying to identify a great opportunity in Christchurch Real Estate?

While it’s true that what a great neighbourhood looks like can differ person to person, all great neighbourhoods do share some common factors that are universally appealing. Here are some things we think you should consider when buying in the Christchurch real estate market.

Great schools

Even if you don’t have children now, buying Christchurch real estate within an area renowned for great schools has a very positive affect on property prices. In most places, you generally need to live within a public school’s catchment area in order to send your child to that particular school, and some parents are willing to pay top dollar to ensure they live in the catchment area of a great public school.

Low crime rates

This is a pretty universal sign of a good neighbourhood. We all want to live in an area where we feel safe and secure and savvy property buyers will do their research and look at crime rates when it comes to moving to a new area, with this information readily available online.

Lifestyle options

A well-rounded neighbourhood is one that offers different things to different people. This could mean they’re plenty of nearby cafes and bars for foodies, walking and hiking trails for active locals, or even local clubs and leagues for engaged community members.

Outdoor activities

Living in an area where residents don’t have to travel too far to get out and about and enjoy the great outdoors makes an area more appealing. Think of parks, playgrounds, golf courses, tennis courts, public pools and even nearby rivers.

Well-presented homes

Not only does a neighbourhood look amazing when each house is well presented, but it also shows that your neighbours take a lot of pride in their home, a good sign for any prospective property buyer or seller. This doesn’t have to mean you live in a street of luxury properties either, great presentation starts with a mowed lawn, neat and tidy yard, freshly painted façade and clean, well-maintained footpaths.

Leafy and well established

Even in inner-city areas, a leafy main road, with well-established older buildings and homes can look really inviting. It shows the area has a bit of heritage given the age of the trees that line most streets and the age of the buildings which have been maintained over time.

Family friendly

Aside from great schools lots of factors play a part in making an area appeal to families. Funnily enough, most are listed above. In addition to these an area which has larger homes on potentially larger blocks is probably going to appeal more to families than say the heart of the city, where units run significantly smaller, with little to no outdoor spaces available.

Shopping

Being close to the shops is not just convenient it can be a draw card that gets people to visit a neighbourhood. Weekend markets are popular neighbourhood attractions, as are large-scale shopping centres, supermarkets, and unique local boutiques.

Public transport and walkability

In larger areas being close to public transport is a must with a huge number of commuters relying on buses, rail and ferries to get them to work every day. Walkability is also a big factor though, being able to leave the car at home to get to nearby attractions like markets, shops and cafes makes an area really desirable.

Entertainment

Not everyone loves the idea of travelling into an inner city to have dinner, see a movie or catch-up for drinks, so residential areas that also boast great local cafes, bars or theatres are always popular. As are those with great famiy entertainment options such as playgrounds, sports grounds, libraries and cinemas.

Your Harcourts Holmwood sales consultant will have a good knowledge of the local area and will be able to answer questions about a neighbourhood.

Harcourts Holmwood are delighted to announce the purchase of local real estate company Westside Real Estate. The purchase sees Harcourts Holmwood acquire 258 Christchurch property managements, 5 dedicated Property Management staff and 3 experienced real estate sales consultants.

Harcourts Holmwood CEO Tony Jenkins says, “It is an exciting opportunity for Holmwood to expand our existing property management division.” The additional 258 rentals see Holmwood Property Management now holding the largest rent role for Harcourts in Christchurch.

“We are thrilled to welcome the Westside Property Management team on-board and are dedicated to providing exceptional service to the landlords and tenants of the properties brought over,” says Holmwood Property Management General Manager, Caroline Register.

The three residential sales consultants, which includes the previous Westside owners Graeme and Donna Wills, have joined the Ilam 2 office at 397-399 Ilam Road. Mr Wills says, “The sale to Holmwood has provided us the resources to provide superior service to our clients in an ever-changing market.”

If you’d like to get in contact with the Westside Property Management team, they now operate from a Holmwood office at 401a Ilam Road.

For further information please contact:
Tony Jenkins
CEO, Harcourts Holmwood
Ph: 03 351 3002 or 0274 322 896
tony.jenkins@harcourts.co.nz

Organising your home for winter can seem like an annoying and perhaps unnecessary chore but a little preparation now could save a lot more hassle later.

Clear your gutters

Roofing gutters should be cleared to avoid water build up and overflow – otherwise you risk costly damage to your roof and property interiors. Damp, mould and even flood damage can result, not to mention damage to building foundations if water is not flowing correctly away from a dwelling.

It can be a dangerous job so perhaps consider hiring a professional.

Prune overhanging tree branches

When overhanging branches come into contact with roof cladding they can scratch, gouge and even puncture roofing materials. When pruning branches, remember to stay safe and keep clear of any power lines.

Again, it may be worth hiring a professional to assist.

Gaps under doors and windows

Sealing gaps around doors and windows can make your home feel warmer and save money on your energy bills. There are many different types of weather strips to deal with these draughts so the best and most cost effective action in this instance is to head to your nearest hardware store.

Cover up hard floors

If you have tiles, wood or concrete floors, rugs are an easy and effective way to cosy up your home in winter. Hard floors are not only chilly underfoot in winter they also don’t help hold in any heat, so unless you have underfloor heating, it’s time to invest in a rug or two.

Downlights

Draughts can be a real problem with older style recessed downlights. The best solution is to replace these old style downlights with modern LED downlights that can be insulated.

Insulation

If your home isn’t insulated or the insulation is old or needs topping up, you will struggle to stay warm. You may be eligible for free insulation under Warm Up New Zealand: Healthy Homes (find out more at www.energywise.govt.nz)