HARCOURTS GOLD CHRISTCHURCH MARKET REPORT AUGUST 2023

During August, real estate in Christchurch performed well; all things considered. A significant 23.3% increase in the number of sales in August 2023, from the month prior, suggests we may not experience such a slowing of sales numbers as observed in past cycles during the lead up to an election. The number of sales isn’t remarkable overall, compared with August in the last 2 years. Though the steep improvement shows the decisive nature of buyers, especially first-time owners who still have a strong presence.

New listing numbers were up 14.4% according to realestate.co.nz which suggests sellers are also certain enough, that any post-election outcome isn’t dictating their plans. The Christchurch inventory level is at 15 weeks leaving August, just under the 16-year average of seasonally adjusted data. Days to sell was stable at a minimal decrease of one day to 30 days in August. This reiterates the need for more properties to sell to meet growing demand.

There are some people on each side of property decisions undoubtedly in a holding pattern due to lending ratios, interest rates or the election. However, the rise of sales and listing numbers display confidence from both buyers and sellers in our market.

The ability for buyers to shop for homes will continue in coming months. Low employment and minimum wage changes in 2021 and 1 April 2023 have influenced median hourly earnings, up 6.6 percent ($1.95) to $31.61. New Zealand recorded two consecutive years of its largest annual rises in hourly and weekly median earnings since 1998, even though this was at historic level is has not increased at the same rate of inflation here.

This is before the 2023/24 New Zealand Living Wage rate became $26.00 an hour on 1 September 2023. This is an increase of $2.35 or 9.9% from the rate in 2022/23. This comes as the result of a full recalculation of the Living Wage, which happens every five years. Environment Canterbury (ECan) is the latest accredited Living Wage Employer and ECan is the first Regional Council to gain Living Wage Employer accreditation.

The election itself appears to be the biggest short-term effect on our market as it draws closer and budgets, tax, policies, and inflation take our attention. Many factors require a post-election viewpoint now, such as how increased migration affects housing demand and which policies influence New Zealand property ownership in the coming years.

Median price did increase month-on-month from July 2023 in Christchurch, though this reflected a steady price level when considering the winter months altogether. All 84 suburbs of Christchurch had median values dip in the past year.

At $1.72m, Scarborough is the most expensive suburb, and with a median value of $447,050 Phillipstown was the cheapest last month. Average timing of Canterbury property ownership is suggested to be 5 years and 5 months (just shy of the national average of 5 years and 6 months) according to Real Estate Institute of New Zealand.

August median prices are up 30% from 3 years ago, which shows how quickly we forget where we once were.

The inclination to carry on in Christchurch has served us well before, buyers and sellers of the moment would agree and this time of year in the Garden City it’s easier to do.

REINZ Figures:

Median $645,100 | Average $743,904

Harcourts Figures:

Median $677,500 | Average $803,770