Property Talk HIGH SUMMER 2019
What’s Happening in the Canterbury Market? The median price trend continues to increase slightly. The sales volume trend has been flat to slightly decreasing over the past year. The days to sell trend continues to ease slightly. The House Price Index has been fluctuating over the past two years with a relatively small percentage decrease over the past 12 months as a result.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from December to January, the observed decrease in median price was slightly larger than expected and the observed large decrease in sales count was smaller than expected. The current Days to Sell of 56 days is much higher than the 10year average for January which is 42 days. The level of inventory available for sale currently sits at 21 weeks, the same as in January 2018. Compared to Jan 2018: • Median Price down 0.7% • Sales Count down 1.8% • Days to Sell increased 8 days
Jim Davis, REINZ Regional Director, says “The Canterbury region experienced a typical January ‘after the holidays’ market, which saw a slowdown at the beginning of the month and activity increasing at the end of the month. The slower start to the month meant an overall decrease in buyers, but with a general increase in rental rates, we saw first home buyer enquiry increase again motivating them to look for a property to buy. Investors are currently looking to sell up, but they require some pa-
Median Sale Price for January 2019
• Median Price down 5.1% • Seasonally adjusted median price down 1.7% • Sales Count down 19.8% • Seasonally adjusted sales count up 7.2% • Days to Sell increased 19 days
$431,900
CANTERBURY REGION Waimate District Waimakariri District
Compared to Dec 2018:
tience as the active buyers are taking their time in making decisions, so the days on market is stretching out. The median number of days to sell increased to 56 in January – the highest since February 2011. The number of houses sold decreased -1.8% compared to January 2018 and median house prices fell 0.7% yearon-year. A likely scenario in the coming months is that prices stay stable and if inventory picks up again, activity will increase as well.”
Timaru District
$207,000 $435,000 $355,000 $528,000
Selwyn District Mackenzie District Kaikoura District Hurunui District Christchurch City Ashburton District
$300,000 $350,000 $425,000 $440,000 $317,000
Disclaimer: Every effort has been made by Mike Pero Real Estate to ensure that the information contained in this publication is complete and accurate. Prospective purchasers and sellers should make their own enquiries to verify any information contained herein. While our information has been prepared with due diligence and care, Mike Pero Real Estate does not accept liability for any errors, mistakes, omissions, or inaccuracies whether expressed or implied.
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Annual Median Price Changes
REINZ Residential Statistics Report for January 2019 Two-tiered real estate market continues as 5 regions see record prices, but Auckland and Canterbury see prices fall.
JANUARY 2018-2019
“January has pointed to a two-tier market continuing around the country with Auckland and Canterbury experiencing a slow down in price, but the rest of the country has seen strong price growth, including five regions achieving record median prices. This increase in price once again highlights how the lack of supply is continuing to push up house prices, therefore, it’s essential that as a country we address this fundamental issue sooner rather than later.” says REINZ Chief Executive, Bindi Norwell. Median house prices were recorded as follows: Northland
$485,000
Auckland
$800,000
Waikato
$550,000
Bay of Plenty
$585,000
Gisborne
$333,000
Hawke’s Bay
$445,000
Manawatu/Wanganui
$348,000
Record Median Sales
Taranaki
$385,000
Increased
Wellington
$562,000
Stable
Tasman
$589,000
Nelson
$566,133
Decreased
Marlborough
$477,000
REINZ House Price Index (HPI) - increases 3.1% annually
West Coast
$175,000
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.1% year-on-year to 2,740. This is down -0.5% from its peak in October last year.
Canterbury
$431,900
Otago
$475,475
The HPI for New Zealand excluding Auckland increased 8.1% from January 2018 to a new record high of 2,691. The Auckland HPI decreased -2.1% year-on-year to 2,799.
Southland
$277,500
The REINZ HPI saw 10 out of 12 regions experience an increase over the past 12 months, highlighting the overall continued strength of the property market. The exceptions were Auckland and Canterbury.
NZ excluding Auckland
$473,300
NEW ZEALAND
$550,000
In January the Manawatu/Wanganui region again had the highest annual growth rate, a 16.0% increase to a new record high of 2,891, followed by Gisborne/Hawke’s Bay in second place with an annual growth rate of 15.7% to a new record high of 2,691 and in third place was Southland with a 15.2% annual increase to a new record high of 2,844.
Days to Sell - highest in nearly 7 years The median number of days to sell a property nationally increased to its highest level in nearly 7 years (since February 2012). In January the median number of days to sell a property increased by 2 days from 46 to 48 when compared to January last year. For New Zealand excluding Auckland, the median days to sell remained steady at 46. However, Auckland saw the median number of days to sell a property increase by 6 days from 45 to 51 – the highest number of days to sell in just shy of 10 years – since February 2009. Marlborough had the lowest days to sell of all regions at 33 days, down from 42 at the same time last year. “While January’s median number of days to sell usually tends to be on the higher side, January 2019 has been exceptionally so, with the national number of days to sell the highest in nearly seven years. It’s a similar picture when you look at Auckland, with the highest number of days to sell in nearly 10 years. Therefore, the comments that we made last month around a realistic approach to market value may help vendors sell their property in a more reasonable timeframe, still hold true,” says Norwell.
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The REINZ House Price Index shows: New Zealand
+3.1% on Jan 2018
NZ ex Auckland
+8.1% on Jan 2018
Auckland
-2.1% on Jan 2018
New Zealand
+0.1% on Dec 2018
NZ ex Auckland
+0.9% on Dec 2018
Auckland
-0.8% on Dec 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
One Step Ahead Preparing your garden well for winter will stand you in good stead for the spring.
As temperatures begin to dip and the last of the colour fades in the flower beds, it can be difficult to get excited about donning the gardening gloves, but setting aside a weekend or two in the garden before the colder weather settles in will reap many rewards in spring.
Out with the old When the roses stop flowering and stone fruit has been harvested it is time to have a tidy up, cutting back old growth to prepare for the winter. Prune fruit trees to help protect from disease as well as pests while aiding preparation for flowering and fruit production. Cut back hedges and remove any dead wood, this will help keep things looking spick and span over the winter months. It will also prepare the plants for new growth.
Roses can either be deadheaded for autumn flowering or pruned right back ready for a new season.
In with the new If you want to add trees or shrubs to your garden, autumn is the perfect time to plant. The warm soil and moisture provide ideal conditions for root growth giving new additions a head start, ensuring they have time to settle in before winter. Plant or transplant trees in autumn when conditions are favourable to encourage root growth and resilience during the winter months. Plant daffodils, snowdrops, and other cheerful spring bulbs now for bursts of colour in the spring.
Feed the soil to give your new plants a healthy start by adding fertilisers or compost before planting. Consult the experts at your garden centre for advice on what to use.
Top tip for beautiful spring bulbs March, April, and May are the optimum months for planting bulbs. You will have more success with tulips if the bulbs are chilled in the fridge for up to eight weeks before planting. Bulbs love well-drained soil, so planting in potting mix in a large porous pot is ideal. Plant bulbs close together in groups rather than spreading them out. This will provide maximum impact when they burst into life as winter ends.
Re-sow your lawn or plant any new lawn areas, they will thrive in the autumn conditions and you will avoid weed problems which can become an issue in spring.
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