Monthly Market Update - July 2018
The just released REINZ sales statistics for the month of June, for our fair city have finally produced the result we have been expecting and predicting for a while now.
The figures show that sales in the city have slowed rather dramatically in the last month compared to earlier this year or against the same period last year. This result is not surprising and was as we said expected “eventually”.
It is not surprising, quite simply because we are right in the middle of a cold wet dreary winter with June having had particularly bad weather. Additionally, the drop was expected ‘eventually” simply because of what we have been reporting for the last few months now, namely that there has also been a marked drop off of newly available property to sell in the prior months. Quite simply if there is a lack of stock on the market you simply can’t sell it and so sales figures were always destined to slow.
The latest statistics tell us there were 468 residential sales in Christchurch city last month a dramatic drop in comparison to the previous months 682 sales.
But quite simply with not much fresh stock for sales then the pool of buyers who have seen everything else that is available, will just wait patiently till the property that suits them is listed and made available. There is no doubt that the figures will be a tonic to the people who would like to see the real estate market slow down and I expect the media to latch onto this, but it was anticipated.
Let me also predict now, I expect this last month’s lower than usual sales will be replicated over the next month or so – but come spring and warmer weather I have no doubt normal sales figures will resume. Why am I so confident, because from what I see and hear from the coalface there is already considerable interest being shown by clients getting ready to sell in the spring. Consultants right across the city have already advised that in the last week or so there is plenty of interest from people getting ready to sell in the spring.
The median sale price of $430,000 is also down this past month – but once again that is a reflection of lower sale numbers coupled with the increased interest from the first home buyer’s market. So the actual market realty has finally caught up with our city’s sales.
As a vendor thinking of selling this is a great time to hit the market even if it is a bit cold at present, a great analogy given to me last week was as simple as this. Do you want to sell now and be a like a Big fish in a small pond, or wait till spring and just be one of the fish in a much bigger pond. I am sure you get the idea. Regardless of your preferred time to look at selling ensure you are talking to your local Harcourts offer, no other company can provide the resources or results that Harcourts can in our fair city.
As a buyer in the current market you will already know there is a lack of fresh stock and as I have said I expect this to continue for at least another month or so.
Additionally if you are purchasing log onto our new upgraded digital Bluebook at canterbury.harcourts.co.nz/bluebook
This new look Bluebook is fully digital and a great asset or assistance to any buyer.
In the mean time hang in there our Winter market is what it is but as I mentioned earlier there are rational reasons.
Check out our latest Auction Results here.