As the New Zealand housing market enters its price correction mode, tight lending conditions and high median values spell a slow market for most major centers. However, Christchurch continues to thwart the trends and rake in profits for brokers, sellers, and buyers alike. The Christchurch housing market continues to depict high profits for sales and resales.

Christchurch housing market still clocking average $800k home value

Home values in Christchurch have increased from $510K in January to $800K in the past 2 years. By April, it has reached $801,614. By tallying from January 2020 to now, Christchurch has witnessed an increment of 56% in home values. Properties are selling faster despite high mortgage interest and reduced credit from financial institutions.

Christchurch housing market updates that the center still looks to outperform other major markets across the country, unless conditions grow even tighter. Christchurch’s market dynamic suggests a lack of panic sellers who know exactly when the city’s prices shall plateau with the rest of the country.

This analogy is further strengthened by reports that nationwide median homeownership is at 7.5 years, in the first quarter of the year. Those who have missed selling at the crest of the avg. home values, may now also face low rentals. However, selling in this market can also fetch them a lump sum profit.

Even a home that has not witnessed a sale in a decade is likely to rake in the profits for the owners. Christchurch saw no drop in resale profits between the last quarters. The median gain for the city was $319,855. It needs to be noted, however, that the lack of panic sellers/buyers and unrelated constructional delays are also behind the plummeting prices.

Christchurch housing market updates construction delays

Christchurch’s incumbent challenges within the housing market lie in its Eastern frame, with construction. Private corps with big tenders for Christchurch residential homes bordering Manchester, Worcester, and Hereford streets and Huanui Ln, are being delayed by the volatile construction and lending sectors.

This has in turn stymied the development of some 102 new homes spread across six storeyed buildings. Further Christchurch housing market updates suggest that the city’s council now sets sight on tighter financing, restrictions, and repopulation across the market, to accelerate a market cool off. Increasing supply chain issues are creating a disbalance where properties are getting completed and handed over to the owners.

Christchurch housing market predictions for FY2022-23 Q1 closing

Currently, about 18 suburbs in Christchurch are already calling for investments above $1 million. Christchurch’s costliest suburb, Fendalton, still has a median asking price of $1.56 million. Expert-speak suggests that prices are likely to hit the median $1 million mark around 2023-24.

Christchurch is well-poised to compete against esetablished main centers across the country too- because the same experts believe a 5% hike nationally would spell a 10%-15%. In a landscape where even the experts believe that Christchurch is undervalued in every way, you may want to re-evaluate whether it is smarter to sell off or hold your investment for the moment.