Key Facts
- Increased interest rates and living costs are causing Christchurch homeowners to hesitate on climbing the property ladder.
- Property listings in Christchurch have increased by 20%, but buyer numbers haven’t risen at the same pace.
- EasyStreet Mortgages adviser Gareth Veale indicates that homeowners are finding it challenging to afford upgraded homes due to higher loan repayment amounts.
- Properties in the $800,000 to $1.1 million range are taking longer to sell as people’s finances fall short.
- Harcourt Gold’s Cameron Bailey highlights that the rise in interest rates has resulted in significant hikes in annual mortgage bills, encouraging some homeowners to sell.
- With increased supply and less competition, it is good time for potential buyers.
Article Summary
Rising interest rates and increasing cost of living are impeding Christchurch homeowners’ plans to upgrade their properties, according to local agents and mortgage brokers. Even though new property listings in the region saw a 20% rise in the last three months to April end compared to the same period last year, buyer numbers haven’t followed suit. Many potential buyers are reluctant to commit to larger mortgages, given the current interest rate landscape.
Gareth Veale, an adviser at EasyStreet Mortgages, shared that homeowners who had planned to upgrade from their first home after a few years are running into affordability issues. High-priced properties, specifically in the range of $800,000 to $1.1 million, are taking longer to sell, often due to financial constraints of prospective buyers. As Veale explains, the stark reality of steep loan repayment costs is deterring many from making a move.
Simultaneously, increased interest rates are leading to inflated annual mortgage bills, thus pushing some homeowners to sell their properties. Harcourt Gold’s Cameron Bailey highlighted an example of homeowners whose mortgage bill rose by $12,000 a year due to raised interest rates. This financial strain coupled with the higher cost of living is causing a rift between buyers and sellers.
Despite the challenging real estate atmosphere, there’s a silver lining for potential buyers. The surge in property listings has resulted in an increased supply, presenting buyers more choices and opportunities at competitive prices.
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