Property Talk AUTUMN 2018
What’s Happening in the Canterbury Market? The median price trend continues to flatten, with the sales volume trend flattening as well. The days to sell trend continues to ease slightly. The House Price Index has had a small increase over the past three months.
O
ur seasonally adjusted results tell us that, compared to what we
expect when moving from January to February, the observed increase in median price was a touch more than expected and the observed increase in sales count was less than expected. The current Days to Sell of 50 days is more than the 10-year average for February which is 43 days. The level of inventory available Compared to Feb 2017: • • •
Median Price up 4% Sales Count down 1% Days to Sell increased seven days
Compared to Jan 2018: • • • • •
Median Price up 3% Seasonally adjusted median price up 2% Sales Count up 36% Seasonally adjusted sales count down 4% Days to Sell increased by two days
for sale currently sits at 18 weeks, one week less than in February 2017.
out. Therefore, the first home buyer section of the market is performing reasonably well. With more for them to choose from, they are taking their time shopping around. Days on the market for properties has increased, especially for anything overpriced, even if it’s only slightly overpriced. Looking ahead the market looks good until Easter.”
Jim Davis, REINZ Regional Director, says “We have a good number of new stock coming to the market daily, especially in Christchurch and it includes properties in all price ranges. Investors are looking to sell lower end stock that will not meet the new standard and more people appear to be selling rental investments when the tenants move
$448,000
CANTERBURY REGION Waimate District
$259,000 $453,000
Waimakariri District Timaru District Selwyn District Mackenzie District Kaikoura District Hurunui District Christchurch City Ashburton District
$335,000 $569,000 $525,000 $480,000 $435,000 $453,000 $370,000 0800000 000525 525 mikepero.com mikepero.com 0800
Annual Median Price Changes REINZ House Price Index
House prices rise 6.9% across NZ
3.7% 10.5%
10.1%
The REINZ House Price Index for New Zealand, which measures the changing value of property in the market, increased 3.9% year-on-year to 2,692 – a new record high. The HPI for New Zealand excluding Auckland increased 6.9% from February 2017 to a new high of 2,524 and Auckland’s HPI increased 1.1% for the same period.
4.5%
-3.1%
18.4% 13.3%
1.9%
$444,000
-10.7%
7.4%
UP 6.9% TO $530,000
RECORD MEDIAN PRICES
Increased / Decreased
Days To Sell The median number of days to sell a property nationally increased by 4 days from 40 days in February 2017 to 44 days in February 2018. Auckland saw the median days to sell a property increase by 6 days to 49 (up from 43 in February 2017). This is the highest number of days it’s taken to sell a property in Auckland for 9 years. Regions with the biggest increase were West Coast (+21 days to 105), Marlborough (+12 days to 49), Manawatu/Wanganui (+8 days to 40), Canterbury (+7 days to 50 – the highest number of days it’s taken to sell a property since March 2011) and Otago (+7 days to 42). Three regions saw a decrease in the number of days to sell year-on-year; Gisborne (-11 to 46 days), Hawke’s Bay (-5 days to 29 – the only region with figures still in the 20s) and Southland (-3 days to 36).
Inventory The number of properties available for sale nationally increased by 3.2% (from 26,110 to 26,943) compared to 12 months ago. This figure is buoyed by reasonably large inventory increases in Waikato (+15.0% - an additional 252 properties), Auckland (+10.9% - an additional 943 properties) and Canterbury (+10.7% - an additional 387 properties). A decrease in inventory in 10 regions saw the New Zealand excluding Auckland level of inventory fall by 0.6% from 17,465 in February 2017 to 17,355 in February 2018. Regions with the biggest falls in inventory were: Hawke’s Bay – down 16.4%; Gisborne – down 12.6%; West Coast – down 12.9%; Taranaki – down 12.4%; Southland – down 10.8%. The Hawke’s Bay region only has 7 weeks’ inventory available to those looking to purchase in the area – the lowest level of inventory in 10 months.
Price Bands Between February 2017 and February 2018, the number of homes sold for less than $500,000 across New Zealand fell from 50.2% of the market (3,163 properties) to 46.0% of the market (2,930 properties) which is reflected by the overall increasing median price. However, at the upper end of the market, the percentage of $1 million plus properties sold increased from 11.4% of the market to 13% of the market. “Taking time to analyse the price bands on a regional basis helps to understand why Gisborne was one of the only regions to experience a decrease in median price during February. The number of properties sold in the $500,000 to $750,000 bracket was only 3.8% in February 2018 compared to 11.1% in February 2017. Additionally, the number of properties in the $250,000 to $499,999 bracket increased from 50.8% to 62.3% - thereby decreasing the overall median price for the region,” concludes Norwell.
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$530,000 median house price
44
Median days to sell in FEBRUARY
4.2%
NATIONAL MEDIAN PRICE CHANGE YEAR-ON-YEAR : 14.3%
“Median house prices increased in 14 out of 16 regions across New Zealand during February 2018 compared to February 2017, including a record high in the Hawke’s Bay. The only regions not to experience an increase were the West Coast and Gisborne which saw decreases of 10.7% and 3.1% respectively,” says REINZ Chief Executive, Bindi Norwell.
3.5%
15.0%
5.4%
The REINZ HPI showed that 11 out of 12 regions experienced an increase in their HPI and 9 regions saw a new high in February, highlighting the strength of the property market. Regions with the highest growth year-on-year were Gisborne/Hawke’s Bay +16.0%, Southland +12.3%, Northland +10.4% and Manawatu/Wanganui +10.2%.
REINZ Residential Statistics Report for February 2018
8.4%
FEBRUARY 2017-2018
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Median house prices for February 2018 were recorded as follows: Northland Auckland Waikato
$450,000 $858,000 $503,000
Bay of Plenty
$553,000
Gisborne
$310,000
Hawke’s Bay Manawatu/Wanganui Taranaki Wellington Nelson Marlborough Tasman West Coast Canterbury Otago Southland NZ excluding Auckland NEW ZEALAND TOTAL
$444,000 $289,000 $350,000 $546,000 $515,000 $416,500 $530,000 $183,000 $448,000 $400,000 $240,000 $450,000 $530,000
The REINZ House Price Index shows: National
+3.9% on Feb 2017
National ex Auckland
+6.9% on Feb 2017
Auckland
+1.1% on Feb 2017
National
+1.4% on Jan 2018
National ex Auckland
+1.3% on Jan 2018
Auckland
+1.4% on Jan 2018
For more REINZ HPI information, see https://www.reinz.co.nz/reinz-hpi Source: REINZ
Bijoux Gardening Add colour and living beauty to your abode with these top tips for small spaces. Inner city living has many
nooks and crannies. Adorn your
benefits, and low maintenance
entrance with topiary, standard
gardening is just one of them.
lavender, or an lemon or olive tree
But just because the footprint
to make an elegant statement.
for potential planting is limited, it needn’t narrow the possibilities. Make the most of every available space in and around your apartment or townhouse to inject a splash of greenery that invigorates, calms and delivers delicious morsels.
Bookshelves, sideboards, bedside tables, kitchen countertops and bathroom vanities are all surfaces where you can introduce greenery.
POT TO PLATE
To add interest, or where surfaces
Having fresh food within arm’s reach is convenient and economical, and doesn’t require a lot of space. Herbs, flowers, fruit and vegetables can all be grown
are few and far between, hang trailing varieties like Boston Ivy, Maidenhair Fern, String of Hearts
Urban dwellings often have small
or Lipstick Vine at different heights
decks and balconies that can
and in clusters.
accommodate a diverse range of plants. Choose varieties that offer
VERTICAL
a tantalising mix of visual beauty,
Another practical gardening idea
fragrance and practicality.
for narrow outdoor areas is to opt
DECORATIVE
Planter pockets can be attached to a fence, the side of your house or wall of your balcony. Hang pots on a trellis or steel mesh, or stack wooden planter boxes in a pyramid fashion, which can double as a dividing wall.
for a vertical plant wall. These can be designed by a professional
No matter how humble or small
landscape architect; or, you can call
your dwelling, plants can breathe
on expert advice from your local
life into otherwise neglected
garden centre to create your own.
successfully in pots and planters, provided there are sufficient nutrients added to the soil and enough sun. If you have more outdoor space available, raised planter beds can be used to house a larger potager garden.
0800 000 525
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Rod Lewis Phone 027 860 4835
0800 000 525
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rod.lewis@mikepero.com Mike Pero Real Estate Ltd Licensed REAA (2008) Statement relating to passing over of information - mikepero.com/receivinginformation