The question on everyone’s mind is “what is the real estate market going to do?”. Here’s our prediction for our local market for the year ahead.
Let’s start by looking at what we observed last year:
Now we’ll look into the changes we have noticed since about December 2021:
What does this all mean now and for 2022?
Even though our local market has seen impressive growth over the past 18 months, we still believe it is undervalued compared to most other parts of the country because our market did experience the same growth as the rest of the country in the past 10 years (post earthquake). If we look at the other median sale prices in regions with large cities and compare them to Canterbury, it looks like this for January 2022 (Source REINZ stats):
This means we are in the best position to weather any reduction in price and are still likely to attract plenty of attention from the rest of the country as they look to shift or invest here to get better value and a better lifestyle as they discover the city is rebuilding and they can work from home.
Interest rates are rising but they still remain historically low compared to what we have been used to in the past 20 years.
Even though the market has eased, it’s still better than “normal”. The average days on the market are still great (35), the median sale price is still holding strong and we are still down on properties for buyers to buy!
Our local market is in a strong place to come through any kind of correction, better than anywhere else in the country. We might see pricing stabilise for a period which is still a favourable result and we do have ground to make up on other parts of the New Zealand market. With this said, 2022 is a positive time to trade & invest in our local market. For expert advice please talk to one of our real estate professionals today.