Monthly Market Update - April
The month of April arrived with continuing uncertainty around a CGT (Capital Gains Tax). Investors were still laying low with a level market creating opportunities for first home buyers.
April results in from REINZ show that while the median house price across New Zealand increased by 6.4% in April, the median price in Canterbury remained static at $460k. Values are still tracking North with an annual increase of 4.3% from 2018. As we have seen in previous years, the seasonal slowdown is clearly starting to grip with sales down 25.9% compared to last month. Easter, ANZAC day and school holidays contributed to the loss of productivity across the region in the month but was welcomed by many as a time to reflect on the previous month’s horrific events.
These factors have affected inventory turnover with days on market increasing by three days in April to 39 days.
Moving through our large network of Harcourts offices across Canterbury, the feedback I’m receiving is that buyers are still nervous but committed to purchase. Our assistance in their purchase is welcomed due to the increased disclosure requirements and potential for litigation if things are missed. Our vendors are looking for, and committing to, stronger marketing campaigns to showcase their homes as standout properties. This is resulting in an increased volume of buyers ready to assess value. Our Open Home numbers remain steady through our advertising clout in the Bluebook, online and in The Press.
I often get asked when is a good time to sell? It’s true the warmer months lend themselves to increased market activity, but my response to this question is that money has never been cheaper to borrow. Buyers are ready to go and wanting to purchase. Why would you place your property on the market in the warmer months when there is a sea of competition? In Canterbury we are blessed with beautiful clear days throughout Autumn and Winter. Homes can still be showcased in all their glory throughout these months without the frustration of another four properties for sale down your street.
Property listings are the life blood of any Real Estate business and the volume of listings coming into Harcourts across the city continues to track well. Harcourts continues to be the preferred company across the city with close to every second new property to the market being listed by your city’s favourite company, Harcourts.