November Market Report 2020
23 Dec 2020, Chris Kennedy
Welcome to our final Market Report for 2020, and what a report it is!
In November, the number of residential properties sold across New Zealand increased by 29.6% from the same time last year (from 7,627 to 9,885) – the highest number of properties sold in 164 months (March 2007) and the highest November sales count since November 2006 (14 years), according to the latest data from the Real Estate Institute of New Zealand (REINZ).
November was an incredible month in terms of the number of properties sold, with just shy of 10,000 properties sold over 30 days (9,885). The last time we saw a similar level of sales volumes was back in March 2007.
November also saw more than half (10 out of 16) of the regions across the country with double-digit percentage increases in annual sales volumes, showing just how buoyant the market is. Part of this is likely to be attributed to people wanting to purchase property ahead of Christmas, another part will be due to the Reserve Bank announcing in early November that it would undertake a consultation in December to re-introduce LVRs earlier than planned, but also due to an underlying fear that prices might increase even further in the coming months.
Christchurch City’s medium price rose from $481,219 in November 2019 to $547,500 in November 2020, with the volume of sales reported at 856 compared to 648 in November 2019 - a whopping 32% increase. The current Days to Sell of 27 days, is less than the 10-year average for November which is 30 days. There were 10 weeks of inventory in November 2020 which is 8 weeks less than the same time last year. This being a big indicator in the mounting pressure on the available property for sale.
Hopefully we’ll hear more news from the Government in the coming months around their plans to reform the RMA and address some of the speed and cost issues developers and builders face when it comes to building residential property. Unless we can build at scale and in an affordable manner, unaffordability is going to be something that remains a significant issue for Kiwis looking to get into the property market.
The rhetoric over the past 9 months from those in the media has changed constantly and therefore has caused confusion and at times, fear. Currently there are no signs on the horizon pointing to a change in the next few months. In my view, being in the market rather trying to predict the market is always best.
The team at gold continue to bring exceptional property to the market. If you would like to experience a gold campaign, please feel free to call. With over 1,100 properties sold at gold this year, rest assured you will be in good hands.
Chris Kennedy, Harcourts gold General Manager and Business Owner