Christchurch median sale price hits new high
Susan Edmonds at Stuff.co.nz reports:
New Zealand's real estate market is on hold "to a certain degree", the chief executive of the Real Estate Institute says, but people are finding ways to keep things moving.
Data just released shows that median house prices were up 13.7 per cent year-on-year in March, to a record national median of $665,000.
Eight regions had new record prices in the month, which finished with New Zealand going into level four lockdown.
"March was an extremely buoyant month for residential property across the country. March marked four months in a row where every region in the country saw an annual increase in median prices," said Real Estate Institute chief executive Bindi Norwell.
The latest stats from REINZ have come out and Christchurch has recorded its highest ever median residential sale price at $500,000, with average time on market at a very brisk 27 days.
Download REINZ’s latest monthly property report here.
"How big the effects of Covid-19 are is up for debate, but the impact will depend on a huge number of factors including how long the country is in an alert level four lockdown for, the level of unemployment, consumer and business confidence levels, people's ability to access finance (and finance their own mortgages) and how long the wider economy takes to recover. Property is a long-term investment and the market will recover; however, the question is, how long it takes to recover."
January, February and March had been extremely busy months for the housing market, she said, with price growth across every region and renewed activity and confidence.
"The market was in a really good place beforehand. We won't go back there straight away, it will take some time but it was very buoyant."
Norwell said the lockdown experience could create a permanent change in the industry.
"Some of this new way we're working may continue. There's a whole lot more engagement, people feel like they are speaking to a lot more people. Even though it's different we might carry on with some of those things – virtually through meetings and also a bit more online innovating in that way. Although it's tough some good may come of it."
As it looks likely that the country will move out of lockdown in the foreseeable future, I am expecting an initial burst of activity in the property market. People have had to pause their plans for the past few weeks and they’ll be keen to get things moving as soon as possible.
While we’re likely to be in for a bumpy ride as the broader economic impact has effect over the medium to long term, property has proven to be Kiwis’ investment of choice time and time again.
Feel free to reach out anytime to discuss your post-lockdown property plans - we’re more than happy to assist. Click here to get the ball rolling with an online appraisal.