September Market Report
30 Oct 2020, Chris Kennedy
The latest figures from Real Estate Institute of New Zealand (REINZ) make for an interesting read. The market continues to defy the opinions of those who have been willing to voice them. The number of residential properties sold in September across New Zealand increased by 37.1% from the same time last year (from 6,112 to 8,377) – the highest number of properties sold in a month in New Zealand for 42 months (March 2017), and the highest number of properties sold in a September month for 14 years – who would’ve thought?
Canterbury: +39.0% (from 844 to 1,173 – 329 more houses!) – the highest sales volumes for the region in 54 months (March 2016). Christchurch is no different when it comes to an increase in the number of sales - recording 513 in September 2019 and increasing to 760 in September 2020. Canterbury had an 11.1% increase in median house price from $450,000 in September last year to $500,000 this September - additionally, Christchurch City ($503,000). These statistics are remarkable!
Prices across the country have seen some significant increases, with once again every region in New Zealand seeing an annual uplift in median house prices. Much of this activity is being driven by the extremely low rates at which people can borrow money, which is at its lowest levels since records began, consumers having additional ‘cash’ available due to a lack of international travel and some uplift from returning ex-pats. When you then add in high levels of confidence in the housing market, the removal of the LVR’s back in March and people’s fear that prices are just going to keep increasing in the future, then this explains why people are going to such lengths to secure a property now. This is when it pays to have an experienced Mortgage Adviser such as Mark Thompson gold’s resident Mortgage Adviser to help you on your journey to home ownership.
At this point in time there are no signs on the horizon pointing to a change in the next few months, so it will be interesting to see if things slow down post-election, or whether sales volumes just continue rising. The current Days to Sell of 30 days is less than the 10-year average for September being 33 days. There were 12 weeks of inventory in September 2020 which is six weeks less than the same time last year. This plus full auction rooms with exceptional activity feels like the local market will remain strong through Christmas as we head into 2021.
I’m proud to say the team at gold continue to bring exceptional property to the market, so if you would like to experience a gold campaign, please feel free to call.