CANTERBURY MARKET

The last quarter of Jan-Mar 2023 we have seen a cooling of the weather and a cooling in real estate activity across the country. Most indicators are pointing to a slow down in listing activity, price growth and general sales decline everywhere except Christchurch and parts of Canterbury.

From what we can see Auckland has been hit particularly hard by a reduction in house prices and general disinterest in transacting property –understandable given the natural disasters of late. The Wellington markets have also seen a slow down in activity due to an overpricing of properties which goes for Dunedin and Central North Island markets. This has been reported as the market trend for the country but it is not exactly true. With Christchurch and regional Canterbury offering excellent value for money we have seen a strong increase in activity which has seen the last two weeks of March being some of the best activity in the past 12 months. The impression we have is that people are seeing some light at the end of the tunnel when it comes to interest rates topping out and house prices have steadied meaning people can still buy with the knowledge their investment will not reduce in price as has been seen around the country over the past year. All positive especially as we move towards the seasonally slow months of winter.

We are yet to see huge upswings in listing numbers but given the positive messages people are starting to hear I would not be surprised to see good listing markets for the next few months as people who may have been waiting for positive news decide to sell their properties and likewise those who have waited will look to buy whilst there is a chance of less competition.

Of particular note – the first home buyer market is once again positive with around 30% of purchasers in the past three months being first home buyers in Christchurch. Experience tells me a healthy real estate market needs plenty of new buyers looking for opportunity at the lower price ranges in a market. Additionally lifestyle properties on the outskirts of Christchurch have been resilient, with activity and prices holding well through the very lean months of January and February.

I was asked the other day which method of sale to use in this market to which I answered auction, you showcase your home above the competition and give yourself the best chance at an unconditional sales, which is worth its weight in gold in a market such as the one we have today. We have seen an upturn in buyer activity in auction rooms with some excellent results being achieved week in and week out.

As a business we continue to work hard to achieve the best results for our clients and given our scale across the city and the region we are in touch with more people than any other company be it buyers or sellers. So if you are thinking of selling and want to expose your property to the most people then you must use Harcourts.

Pick up the phone and call your local Harcourts Four Seasons office.

James Twiss Managing Director

ARE YOU GETTING THE MOST COMPETITIVE RATE AVAILABLE?

As property sales continue to fall across many regions in New Zealand, in recent weeks, we’ve seen a flurry of heavily discounted “under the line” mortgage rates from some New Zealand banks.

Struggling to hit home loan targets in the wake of a floundering property market, some lenders were offering time limited deals on one and two-year fixed terms that were well below advertised rates, for new loans brought to the bank by mortgage advisers.

According to data received from the Reserve Bank of New Zealand Te Pūtea Matua, property sales have fallen well below historical levels not seen since the mid-1990’s. In December 2020 banks lent just over $9.6 billion in new home loans. In December 2021 that fell to $7.9b, and in December 2022, it was just $5.1b.

As more first home buyers enter the market encouraged by lower house prices, and some existing homeowners near the end of the fixed term portion of their home loan, it’s timely to remind borrowers of the importance of comparing interest rates to ensure they’re getting the most competitive rate available.

As a mortgage is likely to be your biggest financial commitment, and possibly the longest over your 20 to 30 year loan term, every dollar saved can make a significant difference. While the best home loan deal is often the one with the lowest interest rate, there are other features that are just as important in helping reduce the overall cost of your home loan.

Working with a mortgage adviser will help you to understand which of these features is likely to be most beneficial in helping you save money:

1. Extra repayments. Making extra repayments from time to time helps reduce your balance faster and save on interest.

2. An offset account. By offsetting money you have in your everyday bank account against your mortgage balance, you only pay interest on the difference.

3. Redraw facility. The option to redraw some of the money you’ve paid into your loan to use for other things, like travel, a new car, or a home renovation.

4. A split home loan. Fixing part of your home loan across a range of loan terms for certainty around mortgage repayments, combined with a portion of your home loan on a variable interest rate that offers flexibility to make extra repayments and redraw when needed.

One of the best ways to determine whether you have the most favourable interest rate available to you is to book a mortgage review with a Mortgage Express branded mortgage adviser. During your meeting, a mortgage adviser will assess your current mortgage and financial situation, and help you determine if there are more favourable options available to you that could save you money.

As Mortgage Express branded mortgage advisers work with a panel of lenders – both bank and non-bank –we have access to the most up to date interest rates and loan terms, and can help you make an informed decision about your finances and mortgage. Contact Mortgage Express to get started.

*https://www.corelogic.co.nz/news-research/news/2023/housesales-hit-40-year-low-amid-cost-of-living-crunch

Anthony Woolcott Mortgage Adviser

027 483 1131 anothony@mx.co.nz mortgage-express.co.nz