HARCOURTS GOLD CHRISTCHURCH MARKET REPORT NOVEMBER 2023

We leave the year with our November sales showing the projected optimism post-election coming to life, both in priceand number of sales. November 2023 saw the highest sales count in Canterbury since March 2022, a welcome relief fromlow levels of sales during that period. The number of sales in November, at 698 for Christchurch City, was also up 23.3%from October 2023 and a 15% increase from November 2022.

Canterbury was the sole region in NZ to increase its median sale price this month. The Christchurch City median saleprice was over $700,000 for the first time since June 2022, at $705,000. According to REINZ, Canterbury had thecountries only positive year-on-year median price movement, up 3.2% from November 2022. The median was influenced by several higher end sales and less first home buyers, a continuation from October where the number of owner occupier buying moves increased compared with the first home purchasers, who had dominated the buying activity in prior months.

Christchurch current listings on realestate.co.nz have decreased nearly 15% across the month, not surprisingly with thetime of year and the rise of November sales. It makes for fresh opportunities in January, with buyers who didn't securesomething suitable before the Christmas deadline and decisive sellers who've already got preparations under way toget to market early in the new year. Some sellers will wait for the school holiday period to end, though this has potential for market saturation in February.

There are rumours mortgagees who have lapsed for over 18 months will creep into the market next year, though this hasbeen expected for some time. A National graph recently released by realestate.co.nz, showing buyer and sellerintentions in the coming 12 months, suggests competition from buyers may be decreasing in 2024 while seller interestremains stable, this data has been gathered since 2016 and the projected gap, from number of sellers to number ofbuyers, is the smallest it has been in that time. If the buyer demand decreases and listing levels remain comparableacross the next 12 months properties will take longer to sell and as a result prices would soften. It's hard to imagine alarge shift of demand given the 3% population growth to 5.27 million in New Zealand on top of the housing shortagethat exists. Maybe investors will revisit the market with more vigour in 2024 and relieve some rental pressure. It is February before we start to know what course the year will take. All signs so far have optimism for Christchurch in2024, may it be a prosperous time for us all.

Take care until the new year!

REINZ Figures:

Median $705,000 Average $812,428

Harcourts Figures:

Median $799,000 Average $904,617