Good time to buy in Christchurch: Harcourts

Power is shifting to buyers in Christchurch, real estate agency Harcourts says

Wednesday, July 16th 2014, 12:00AM

by The Landlord

It has released its latest MarketWatch, in which it says there has been a big jump in the number of new listings in Christchurch, up 27.6% on June 2013.

The amount of property on hand had also increased by just over 30%.

Harcourts said that was largely because of the number of new builds that were coming on to the market.

Chief executive Hayden Duncan said: “LVR restrictions and rising interest rates have seen a drop in the number of buyers, and this has shifted power in favour of those looking to purchase. However, the average sales price is at an all-time high of $529,097. While it might seem that prices should be dropping with an increased level of stock and less buyers, this is not the case as many of the new builds have a fixed cost per square metre that must be met.”

He said it was a good time for buyers because there was a lot of stock to choose from.

There were 5% more auctions in Christchurch in June than in June 2013. Written sales were up 3%.

Around the rest of the country, June was a mixed month for Harcourts offices.

The northern region, which includes Auckland and Northland, reported another increase in the average sales price. It reached a record $721,553.

Listings in the region were down 20%compared to May and down 13.6% on June 2013.

Harcourts said sales outside central Auckland, where prices were highest, continued to be strong.

More buyers were looking to the outskirts of the city for value for money.

The agency said written sales were down or remain constant in provincial New Zealand, where LVR restrictions had been felt most keenly.

The central region reported a year-on-year increase in sales of 2.5% and a 9% increase in average price, to $305,981.

ellington reported a 16.3% drop in written sales but a 2% increase in average price, to $350,078.

The South Island, excluding Christchurch had no change in the number of sales compared to a year earlier and only a 1% increase in average sale price, which crept up to $309,132.

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