Christchurch home values still rising, but market show signs of slowing

Property analyst CoreLogic says the average home value in the city in April was $594,000 – 15.1 per cent higher than a year ago. It recorded a 6.9 per cent increase in values during the three months from the start of February to the end of April.

CoreLogic’s head of research, Nick Goodall, said 27 per cent of those buying Christchurch homes so far this year were investors with mortgages.

Dunedin: strong market, high demand

Dunedin has experienced a meteoric rise in house prices over recent years but remains a more affordable option than many North Island centres.

In common with markets around the country, Dunedin has seen rapid strong price growth in the wake of last year’s lockdowns.

CoreLogic’s latest data shows its average property value was up by 15.4 per cent over the year to March, at $620,990. That’s an increase of $82,965 on the same time last year.

Record prices paid for properties

Waipā recorded a 21.4 per cent increase in its median price range, moving from $660,000 in March 2020, to $801,000 in March 2021.

Hamilton also had a record month for median prices, moving from $620,000 to $780,000, a 25.8 per cent increase for the same period.

The overall median property price for the Waikato region was $730,000, a 22.7 per cent annual increase.

Why the housing crisis isn’t taking a holiday

Just look at the Russell Noticeboard and there are so many pleas for rentals. And people aren’t talking about the spillover effects of this kind of massive wastage – the fact that whānau (family) that want to come home to live and work can’t. Kororāreka is trapped in a weird place where people wash in and out during holiday times but the permanent population is too small to sustain mahi (employment) and businesses all year round so it is effectively locked in a zero growth cycle.

The true cost for homeowners buying a fixer upper

Home buyers are offering too much money on houses without realising the true amount it will cost to carry out renovations, a consultant says.

The result is disappointment all round – for the other buyers who missed out on getting a house, and the ones who spent the majority of their budget on one, only to realise the price to bring it up to scratch was well above what they could afford.

First home buyers shelling out $94,000 more to get on property ladder

February was the last month before loan to value restrictions on bank lending were officially back in place although most of the major banks had already bought them back.

From March 1 banks were restricted to a 5 per cent cap on new lending to investors with a deposit under 30 per cent and up to 20 per cent of new lending to owner-occupiers with a deposit under 20 per cent.

Are investors starting to step back from the housing market?

As of March 1, the Reserve Bank’s reintroduced loan-to-value ratios (LVRs) officially came into effect, and investors now need to have a 30 per cent minimum deposit to get a mortgage from a bank.

From April 1, investors would need to have a 40 per cent minimum deposit and the Government is soon expected to announce further measures to address the runaway market.