The Christchurch property market has entered a steady phase, providing what Harcourts Gold Papanui’s top agent, Cameron Bailey, describes as a “fair market” with plenty of choice for buyers.

In an interview with chrislynchmedia.com, Bailey said the current environment favours those looking to purchase, with recent shifts in interest rates bringing a more positive outlook but not yet impacting prices.

“Interest rates have come back a small amount, which has boosted optimism. People aren’t as fearful of continuously rising rates. However, this hasn’t caused any increase in property prices; instead, it’s given buyers more confidence.”

The Harcourts Gold Papanui office, known for its high sales volume, has seen a rise in listings.

In the few weeks alone, the office recorded 58 listings and 28 sales, a lower ratio than usual. This increase in listings has introduced more options for buyers, while sellers now face stiffer competition.

“There’s more stock out there than in recent years. Many homeowners who held off selling are now putting their properties on the market. This means buyers have three or four different houses to choose from, keeping sellers honest and pressuring them to set realistic prices,” Bailey said.

As spring hits, the Christchurch market typically sees a rise in listings, but this year’s supply is higher than usual.

Despite the increase in choice, Bailey dismissed any notion of a “doom and gloom” scenario, saying that buyers are still actively searching.

However, he acknowledged that several properties saw no visitors at open homes over the weekend, a possible result of high stock and competitive pricing.

“Buyers have options, so they’re more selective about price and quality,” he said. “If a house has been on the market for a few weeks with comparable properties nearby, sellers may need to sharpen their pricing to attract interest.”

For those who bought in the past two to three years, selling now may mean facing a potential loss. Bailey said, “If you purchased recently, you might struggle to recover your money in the current market. This could make it a good time for others to buy, as we’re likely at the bottom of the market cycle.”

The property landscape has also led to a gradual return of investors, with more opportunities emerging as prices stabilise. Although interest rates remain relatively high, they are no longer climbing, providing some relief to prospective investors.

Reflecting on the past couple of years, Bailey remarked on the market’s volatility, saying, “Things can change fast in real estate. It only takes a shift in interest rates or a global event to impact the market. We have to adapt quickly to keep things moving.”

Bailey acknowledged ongoing economic challenges affecting both buyers and sellers, with cautious spending patterns persisting across industries. “People just don’t have as much disposable income as they did two or three years ago. They’re cutting back on luxuries and being more careful with their cash,” he observed.

With a steady outlook for 2024, Bailey predicts that while interest rates may stabilise, the economy will remain tight. However, he sees a potential turnaround by 2025, with the industry adopting a cautious motto: “Stay alive to 25.”