Property Talk AUTUMN / WINTER May / June 2018
What’s Happening in the Canterbury Market? The median price trend continues to flatten but is still increasing slightly. The sales volume trend has been fairly flat over the past six months. The days to sell trend continues to ease slightly. The House Price Index has not moved much over the past 12 months.
O
ur seasonally adjusted results tell us that, compared to what we expect when moving from March to April, the observed decrease in median price was a touch larger than expected and the observed decrease in sales count was smaller than expected. The current Days to Sell of 34 days is the same as the 10-year average for April. The level of inventory available for sale currently sits at 20 weeks, roughly three weeks more than in April 2017. Compared to April 2017: • Median Price down 1% • Sales Count up 13% • Days to Sell unchanged Compared to March 2018: • Median Price down 2% • Seasonally adjusted median price down 1% • Sales Count down 18% • Seasonally adjusted sales count up 8% • Days to Sell decreased 1 day
Jim Davis, REINZ Regional Director, says “The market is a typical Canterbury early winter market. There is still good interest, but agents are having to work smarter to put sales together. We are still seeing good enquiries across the price brackets, but especially in the lower end. With the market tracking on and with new rules for investors, there is more stock at the lower end to choose from. A substantial section of the market is first home buyers, and they are taking advantage of the choice at the moment.
The open home attendances have quietened off since the first quarter of this year, but this is a typical pattern we see each year at this time. Looking forward, there will probably be a long winter market with the days stretching out and more pressure on prices from savvy buyers, but there is no expectation of a major change to our current steady market.”
Median Sale Price for April 2018 CANTERBURY REGION Waimate District
$441,000 $203,000 $445,000
Waimakariri District Timaru District
$345,000 $568,000
Selwyn District Mackenzie District Hurunui District
$415,000 $325,000 $447,500
Christchurch City Ashburton District
$332,000 0800000 000525 525 mikepero.com mikepero.com 0800
Annual Median Price Changes
REINZ Residential Statistics Report for April 2018
8.3%
APRIL 2017-2018
REINZ House Price Index
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.8% year-on-year to 2,706. The HPI for New Zealand excluding Auckland increased 6.6% from April 2017 which equals the record high set last month of 2,546.
“Real estate industry sees highest annual volume increase in 23 months”, says REINZ.
-0.6% 2.5%
8.6% 14.3%
The REINZ HPI showed that 11 out of 12 regions 5.8% 12.0% experienced an increase in their HPI over the past 12 months, highlighting the continued strength 19.4% of the property market. The only region not $305,000 to experience an increase was $550,000 7.1% Canterbury, which experienced a minor 15.8% 3.1% decrease of 0.3% year-on-year – nothing 2.4% for the region to be concerned about. The Gisborne/Hawke’s Bay region 4.2% again had the highest annual growth rate at +14.7%, again followed by Manawatu/Wanganui in second place (+12.7%) and Southland in third place (+11.4%) highlighting the strength of these regions.
median house price
19.5%
$460,000
NATIONAL MEDIAN PRICE CHANGE YEAR-ON-YEAR :
UP 1.9% TO $550,000
RECORD MEDIAN PRICES
The median number of Increased / Decreased days to sell a property nationally increased by 2 days from 34 days in April 2017 to 36 days in April 2018. This is 2 days more to sell a property than it took in March this year. Auckland saw the median days to sell a property increase by 2 days to 37 (up from 35 in April 2017) and the same number of days as in March 2018. Regions with the biggest decrease in the median number of days to sell were West Coast (-68 – the lowest number of days to sell for the month of April for 5 years), Taranaki (-6 days) and Bay of Plenty (-2 days). Regions with the biggest increase in the median number of days to sell were Gisborne (+11 days), Marlborough and Southland (both +8 days) and Manawatu/ Wanganui (+6 days).
Inventory The number of properties available for sale nationally increased by a marginal 1.1% (from 25,988 to 26,269) compared to 12 months ago. This figure was again buoyed by inventory increases in Nelson (+19.9% - an additional 74 properties – the largest annual inventory growth since January 2009), Waikato (+9.2% - an additional 161 properties, the exact same increase as last month) and Canterbury (+8.2% - an additional 306 properties). The New Zealand excluding Auckland inventory level fell by 0.5% from 17,061 in April 2017 to 16,975 in April 2018. However, Auckland’s annual inventory increase of 4.1% is the lowest annual increase since October 2016. Regions with the biggest falls in inventory were: • Southland – down 16.2% • Marlborough - down 11.9% • West Coast - down 11.7% • Manawatu/Wanganui – down 10.8%. Highlighting the lack of inventory across the country, the Wellington region still has the lowest level of inventory across the whole country with only 8 weeks’ inventory available to those looking to purchase in the area. The Hawke’s Bay again only has 9 weeks’ inventory; however, this is the first positive annual inventory change since July 2014.
Price Bands Between April 2017 and April 2018, the number of homes sold for less than $500,000 across New Zealand fell from 44.6% of the market (2,664 properties) to 43.1% of the market (2,747 properties) which is reflected by the overall increasing median price. The number of properties sold in the $500,000 to $750,000 bracket increased from 26.9% in April 2017 to 28.3% in April 2018. At the top end of the market, houses sold for more than $1 million decreased from 14.2% of the market in April 2017 to 13.8% of the market this year.
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$550,000
36
Median days to sell in APRIL
0.9%
Days To Sell
19.0%
“The last time there was an annual increase in the number of properties sold that was this strong, was in May 2016. It is a pleasing result for the industry that we have had three out of four months suggesting that the market is in a good position,” says REINZ Chief Executive, Bindi Norwell.
Median house prices for April 2018 were recorded as follows: Northland Auckland Waikato
$455,000 $850,000 $503,000
Bay of Plenty
$570,000
Gisborne
$320,000
Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$431,250 $305,000 $365,000 $558,000 $550,000 $420,000 $530,000 $172,000 $441,000 $460,000 $250,000 $460,000 $550,000
The REINZ House Price Index shows: National
+3.8% on April 2017
National ex Auckland
+6.6% on April 2017
Auckland
+0.9% on April 2017
National
-0.1% on March 2018
National ex Auckland Auckland
+0.0% on March 2018 -0.3% on March 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Taking Advantage Of The Winter Property Market With the colder months of winter having arrived, the property market also has a tendency to cool off, with some sellers tempted to hold off until spring and summer to sell their property. However, there are some distinct advantages to selling your home during the winter months.
- instead attracting those who
particular appeal if you are selling an
are serious buyers that have the
older house and it can be a pivotal
intention of making a purchase.
factor when a buyer looks to make
Here are some great ways to
their home-buying decision.
maximise the viewing potential
Lighting
There are generally fewer listings
opportunity to showcase all of your
on the market during winter,
winter warmers and demonstrate
however this can open your home
that they are working and ready for
to greater exposure. A lack of
the purchaser to use. Buyers will
listings can also result in increased
ask themselves if it felt cold while
buyer competition. The colder
looking through the house and they
conditions should filter out any
will look for functioning hot water
tyre kickers or nosy neighbours
and heating systems. Heating is of
of your home during the winter months.
With
winter
comes
colder
temperatures, shorter days and less
Heating
natural light. A lot of people who
By selling your home at the
are thinking about attending an
coldest time of year, you have the
open home will often drive past the property in the evening and nothing looks better than a house lit up at night time. Therefore it is a good idea to set timers up for those night time drivers reducing your power bills.
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