Canterbury housing market down but not out

Photo: File
Photo: File
There was a big decrease in the number of houses sold across New Zealand over March - but the Canterbury market has not grounded to a halt.

REINZ chief executive Bindi Norwell said Canterbury was one of the country's top regions in terms of the number of properties sold over March.

She said over a six-day period of the alert level 4 lockdown in March, more than 480 properties were sold across the country, with sales occurring in each region via online platforms. 

The regions with the largest percentage of sales were Canterbury (18.4%), Auckland (22.1%) and Wellington (10.9%).

"The majority of these sales were likely already being negotiated or had potential offers waiting before the country moved into level 3 and subsequently level 4 lockdown.

“Analysis of March sales data across the country shows that for the first three weeks of the month, between 1750 and 1950 properties were sold each week.

"However, in the final week around 1100 fewer sales occurred as a result of the alert level 4 lockdown coming into effect, that is approximately a 62% decrease on what we would have likely seen otherwise.

“Whilst Auckland had the largest percentage of sales, it also appeared to be one of the most affected regions, with sales down 80% (109 properties sold, down from an average of 534 from the three six-day periods prior). However, Gisborne’s sales were down 83% with two properties sold, down from an average of 12 from the three six-day period prior). These regions were closely followed by Waikato which saw sales fall by -77% (31 properties sold, down from an average of 135 from the three six-day periods prior),” said Norwell.

Other regions that were heavily affected were:

  • Manawatu-Wanganui: -69% (24 properties sold, down from an average of 77 from the three six-day periods prior)
  • Wellington: -67% (54 properties sold, down from an average of 162 from the three six-day periods prior)
  • Northland: -66% (14 properties sold, down from an average of 42 from the three six-day periods prior)
  • Hawke’s Bay appeared to be the least affected region with -29% fewer properties sold than would be expected (34 properties sold, down from an average of 48 from the three six-day periods prior).

Other regions that were impacted to a lesser extent were:

  • Marlborough: -36% (12 properties sold, down from an average of 19 from the three six-day periods prior)
  • West Coast: -37% (4 properties sold, down from an average of 6 from the three six-day periods prior).

Said Norwell: “Whilst lockdown has slowed the housing market across the country, it hasn’t stalled it.

"However, the key will be the level of activity that occurs in April when people have been unable to visit a property in person – even for private inspections.

“REINZ has continued to work with the Government to find ways to keep the industry moving through the various alert levels to ensure buyers and sellers can make property related transactions and try and move forward with their lives."

 

 

 

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