Timaru urban real estate market ‘still vibrant’, says realtor

A leading Timaru real estate agent has shut down all talks or comments about a slump in the city’s urban real estate market.

The Real Estate Institute of New Zealand (REINZ) ambassador for Timaru Julian Blanchard said that in June 2022, 35 properties were sold in Timaru Urban with a median price of $515,000 and 35 median days to sell.

In May 202255 properties were sold in the urban market of Timaru with a median price of $510,000, in March 2022there were 58 sales with a median price of $460,000 and in February 202244 properties were sold with an average price of $470,000.

“Despite speculation and other comments about the market, the Timaru [urban] real estate is still alive and prices are not falling,” Blanchard said.

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“There are still buyers looking for properties and although demand was not as strong as 12 months ago, they are still selling for good prices.”

Blanchard said the reason why the urban market in Timaru remains vibrant can be attributed to the fact that the real estate market is closely linked to the local economy.

“The labor market here is strong, commercial and residential. People move to the city for work, and we are mostly an agricultural based economy.

“Timaru has been quite isolated from Covid shocks for the past two years. While the rest of the country saw median prices soar, we never did.”

Figures released by REINZ on Wednesday showed the median price of $500,000 for the Timaru district in June, compared to $507,000 in May and $430,000 in June 2021.

52 homes in the district were sold against 65 in May and 81 in June 2021.

The Waimate District’s median home price had a larger gap of $62,500 between June ($322,500) and May ($385,000) 2022 compared to $357,000 in June 2021.

Home sales in the Waimate District were six in June 2022, compared to 10 in May and 12 in June 2021.

The Mackenzie District’s median home price was $570,000 for June 2022, with six homes sold in the district.

According to REINZ, New Zealand’s median price rose 4.2% from $816,000 in June 2021 to $850,000 in June 2022. However, demand dampened sales activity as the number of sales days increased.

Jen Baird, CEO of REINZ, said house prices in Canterbury (including South Canterbury) performed well in June.

“The region saw a 22.1% increase in its annualized median price to $690,000,” Baird said.

“The Ashburton District and Hurunui District reached record median prices of $545,000 and $695,000 respectively.

“Owners are the most active in the market and the first home buyers are starting to reappear. People looking to move from the North Island are showing an interest in Canterbury, especially Aucklanders and Wellingtonians.”

Baird said agents in Canterbury say the biggest impacts to the market are financial constraints, interest rates, the ability to keep merchants safe and economic uncertainty.

“Agents believe that recent changes to the CCCFA are a positive move for the market. It can help progress deals and improve the speed of approvals so buyers can move forward with their purchase.”

She said Canterbury remains an attractive option for buyers because of the increasing employment opportunities, affordable housing and lifestyle offerings that give the market strength and confidence.