Well Today I had the opportunity to meet many of the Harcourts team down in Christchurch City Branch (Grenadier). I was totally surprised to see a 4 story building standing in front of me. With a cafe on the ground floor this office seems to have it all. Anyway I was fortunate to watch a few of their auctions today. I only got to see 8 of them (there were 20). But the results were good to see. 2 of the ones I saw sold under the hammer, 5 of the properties had bidders leaving only one of them I saw not having any bidders but after speaking to the owner it sounds as if that had some strong conditional interest in it. This is some fairly good results when you look at what’s happening around us all at the moment.
I also took a few moments to speak to some of the buyers in the room and all of them were optimistic about the market conditions. One person went on to tell me that he wasn’t worried about the market. He was telling me that if you look closely at the world prices of almost everything (gold, oil, minerals, materials of sorts) they have all reduced in price. He said to me he has been watching the housing market come back and is of the opinion that if the short term pain is a small adjustment for the long term gain.
I couldn’t not think to myself how true this statement was. All the major experts you talk too about property investing say that the profit margin in property is of a long term secure type. And if you look at history property prices have gone up steadily. The median prices traditionally have their ups and downs but all in all the line is slowly and gradually upward in the long term i.e. 10+ years.
Below I have sourced data from the sales in Christchurch for the last 5 years and then 16 years. It’s truly interesting and very different to the New Plymouth Market. The Christchurch Market seems to more seasonal with probably the higher priced houses been sold in the summer and the others in the cold south island months. To read this graph each line represents a month in its respective year.
Below is the 5 Year Trend
Below is the 16 Year Trend
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[...] Last week I spent a number of days in Christchurch checking up on the market conditions and many other things in preperation for part or all of my family moving there soon. As stated in my previous post [...]
Deon – when you moving to Canterbury? Great rugby teams down this way you know!!!