February Market Report

30 Mar 2021, Harcourts Admin

February Market Report

REINZ has released the latest sales data relating to the month of February 2021 and no doubt the result will come as no huge surprise to anyone showing an interest in the property market either locally or nationally.

Their headline said it all, ‘Highest number of properties sold in a February month in 14 years.’  This headline was followed by ‘Sales volume up almost 15% compared to February last year, along with a rise in the Median sale price.’ For the same period the national median sale price rose by 22.8% compared to the same time last year and 12 out of the 16 regions have experienced new record median sale prices for the month.

Here in Christchurch the trends shown by the of national figures are similar. There were 738 recorded sales for Christchurch, which is up a staggering 21% on February last year. Our Median sale price across all these sales now sits at a new record high of $581,000; also, up 23.4% on the same time last year.

Anyone searching for property in Christchurch over the last few months will have no doubt realised and in fact seen and experienced the pressure that is occurring across our city as a consequence.

For Harcourts the figures are equally as strong. February was a good listing month with the volume of property brought to the market being the highest number we have seen in the last 15 months. This bodes well for buyers, provided the levels of listings continue in this manner. Interestingly over 50% of all the new listings were listed as auctions. This is a sure sign that owners are now recognising that in the current market there are benefits to be achieved with this method of sale.

Auction is also proving popular with buyers because they are at least able to see exactly what is happening with the property they are hoping to purchase and they can make a conscious purchase price decision, in comparison to the ‘stab in the dark’ option that other methods offer.

BRIGHT-LINE TEST EXTENDED AND INTEREST DEDUCTIONS SCRAPPED FOR INVESTORS

The government have extended the bright-line period to 10 years for residential property except newly built houses which will remain at 5 years. The change is effective from Saturday 27th March 2021.

Interest deductions on residential investment property acquired on or after 27 March 2021 will not be allowed from 1st October 2021.

Go to the link below for further information and extra links to the IRD factsheets:

https://www.blog.reinz.co.nz/blog/government-announcement-impacting-property-ownership