CHRISTCHURCH MARKET

The uncertainty that is prevalent throughout the country currently is now showing up in our local market. The sales volume figure of 417 for Christchurch is the worst February sales figure record in recent times and possibly since the quakes. It’s not totally unexpected as the country responds to the economic factors that are affecting us all and follows the low volume levels we have seen across our city for a few months now.

The recorded median sale price of $675,000 supports the flat property values we have been seeing over the past year. There can be no doubt that prices are nowhere near the peak values achieved a year or so back, but we haven’t seen huge wholesale price drops either.

To date here in Christchurch, we are not seeing an overly huge increase in listed property, and we have yet to see anything resembling distressed sales. Currently the investment side of the market has slowed dramatically, so the potential and opportunity for distressed sales in this area of the market is a lot stronger than it has been for a while. While the first home buyers’ side was very quiet up until a couple of months back, there is no doubt there is now more activity happening here as the buyers start looking again, and we are seeing steady interest in the cheaper first home buyer part of the market. The regular home buyer portion of the market is slower and tighter with the drop in sales volumes. But there is little doubt that there is definitely an element of a “Mexican standoff “ occurring with some buyers and sellers having different perceptions of value in the current climate.

Another very interesting but positive aspect to the current market is the real shortage of rental properties for tenants out there. Three or four bedroom long term rentals are in short supply and when they become available, they are being snapped up. Rental rates are strong and have no sign of slipping with this shortage. It makes you wonder how long it will be before investor buyers start relooking at this type of property especially when they realise there are special finance opportunities available from banks currently, as they strive for volume and market share in the slow loan market operating currently.