Canterbury real estate agents have noticed a hunger among buyers, as the market looks to spring back to life after the Covid-19 crisis.
OneRoof’s latest house price figures show little change in the region’s house values, with Christchurch's median value up just 2.8 percent to $457,750 in the year to April 2020.
That's not cause for alarm, though, with Christchurch property values have been flat for several years now, mostly due to the particular dynamics of the city's housing market, says OneRoof editor Owen Vaughan.
“In Christchurch’s favour is the fact it is a strong employment centre and has a good stock of quality new builds at affordable prices. Kiwis seeking value for money would do to turn their attention to properties there.”
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There has been strong bidding action in the auction rooms as buyers flex their muscles after nearly two months of sitting on the sidelines.
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Chris Kennedy, general manager and business owner at Gold Real Estate Group, says buyers, encouraged by changes in the loan to value ration requirements and the low interest on offer, are taking notice of the affordable price points in Christchurch.
“We have an affordable market for all demographics,” he says, adding that people are playing catch up for the six weeks of lockdown.
Countering arguments that Covid-19 would lead to a continued pause in the market, Harcourts Papanui owner Lynette McFadden says buyers are acting quickly and decisively. “There are people who came out of lockdown thinking ‘I need to get this sorted,’” she says.
There is a lot of diversity too. “There are still people looking for homes in good school zones, still people looking for a trade up and a trade down.”
Last week, Harcourts Papanui conducted 257 open homes with 758 people in attendance, supervised 230 buyers' inspections and brought 29 new listings to market.
Lynette's business partner and husband John says the unique thing about Canterbury’s housing market is that people don’t panic in crisis – they “just get on with it”.
“We are used to it, with the earthquakes and the mosque attack, so people are deeply resilient because we've been here before,” he says.
Economist and commentator Tony Alexander predicts Kiwis in regional New Zealand will be moving to bigger cities such as Christchurch to chase employment opportunities.
“People will be looking for the safest housing market,” he says.
Harcourts auctioneer Roger Dawson says four in six properties sold under his hammer last week with multiple bidders for each property.
“The market is surprisingly resilient and robust at this point and it’s an encouraging sign. There’s no doom and gloom.”
Owners are prepared to meet the market and buyers are adjusting to the market and competing, Dawson says, adding that most of the bidders he sees are locals.
