Watch Nathan's latest Christchurch market update below, or keep scrolling to read the full article:
With spring in full swing and the days getting longer, there’s a renewed sense of energy in Christchurch’s property market.
The latest numbers from REINZ show that the city is holding steady, with plenty of activity and a healthy dose of optimism as we head toward summer:
- Canterbury’s median price rose 2.2% year-on-year to $705,000.
- Nationally, residential property sales climbed 3.1% year-on-year, with 11 of 16 regions seeing more activity.
- Owner-occupiers and first home buyers remain the most active groups across the nation, while investor and overseas buyer enquiries have softened.
- The national median house price dipped 1.5% to $770,000, and prices outside Auckland fell 0.7% to $690,000.
The big headline this month will come as no surprise: the Official Cash Rate (OCR) dropped from 3% to 2.5%.
It’s a welcome relief for buyers and homeowners alike.
Some economists are even suggesting we could see rates fall further, possibly bottoming out around February or March next year.
The flow through to increased spending in the economy won’t be immediate, but we at least have reassurance that over the next six months, Kiwi homeowners will start to feel a little less stretched.
Naturally, this has sparked a lot of questions from clients: “Should I fix my mortgage now, or wait and see what happens?”
The answer, as always, depends on your personal situation. If you’re comfortable with a shorter-term fix, go for it. If you want more certainty, splitting your loan between one- and two-year terms is a solid option.
The key is to do what feels right for you (and to chat to one of our advisers in the process!).
Who’s active in the market right now?
First home buyers are still leading the charge in our office, making up about 40% of our lending volume right now.
Lower interest rates, realistic home prices, and a buyer-friendly market are all fuelling demand. But here’s something to keep an eye on: when rates drop, property investors tend to become more active.
In the last quarter, our investment lending doubled. Property investors now make up 10% of our applications, up from just 4% previously. They are building new homes, duplexes, and snapping up older properties with renovation or subdivision potential.
Construction is ramping up, with more buyers locking in sections and fixed-price contracts. But stock is tightening. Four years ago, there were over 1,000 sections available—now, it’s much less. If you’re thinking about building, be aware that land prices could rise next year as quality sections become harder to find.
Looking ahead
With the OCR drop likely to influence further interest rate reductions, and the usual spring surge in listings, there is every reason to feel positive about the months ahead.
If you’re considering your next move, whether buying, selling, or refinancing, now is a great time to review your options.
As always, if you have questions about your property or financial goals, our team is here to help.
Get in touch any time, and we’ll help you make the most of the opportunities this spring.