18 October - Timaru Herald

Fewer sales and prices down. That was the story for home sales in South Canterbury last month, as Rhonda Markby reports.

South Canterbury has gone against the national real estate trend, with fewer residential sales and lower prices.

While nationwide the industry was talking of the continuing "spring recovery" it appears spring could be late coming to South Canterbury, with the June snow being blamed for the delay.

Real Estate Institute of New Zealand September figures show 56 homes sold in Timaru for a median price of $188,900, and an average price of $206,400. Those figures were well down on recent months.

Back in June the average price of the 74 homes sold was $227,721, while in August it was $216,059.

September also saw the lowest number of sales in Timaru for six months.

Although the prices being paid might be lower, the good news for those on the market, was the speed with which properties have been selling – with Timaru homes averaging a fortnight on the market in September, half the average selling period of recent months.

September sales were also down in towns throughout South Canterbury, but not to the same extent as in Timaru. The average price for those properties has continued to increase, with the September average being just under $198,400, $10,000 more than the August average, but similar to the July figure.

Timaru registered valuer Roger Carter suggested while the urgency might have gone out of the local market, the sector was still strong.

"It's a good steady market place for willing sellers, willing buyers."

The usual spring boost to the market appeared to be later than usual, with the June snow being blamed. Mr Carter suggested many local home owners had probably delayed putting their properties on the market until they had completed snow repairs and gardens were looking more presentable.

He said the new home building sector was also looking strong in Tekapo and Twizel, with numerous new homes having been started in recent weeks.

Nationwide the residential market continued to recover in September, with the national median price returning to the high of $313,000 recorded in July.

Of the 12 real estate regions surveyed eight experienced an increase in medians while prices were lighter in much of the South Island.

And while it was suggested that houses were getting harder to sell in Geraldine and Temuka real estate agents there disputed that.

They said while things were not as frenetic as they had been and buyers were taking a little longer to decide, house sales were still strong.

In Temuka alone 15 houses sold last month which real estate agents said was a good number.

"People who have just joined the industry don't know what a normal market is," one said.

"They think it is sell, sell, sell but that is not the norm. Properties are selling a bit slower but that is normal."