Christchurch house auctions reach new highs pre-Christmas

27 December 2013

Christchurch house auctions reach new highs pre-Christmas

House sellers didn’t take their foot off the pedal in the lead up to Christmas, according to auction figures just released by Harcourts Holmwood in Christchurch.

Tony Jenkins, chief executive of Harcourts Holmwood, said auction marketing was increasingly popular because of the certainty it provided. Auctions now account for 40% of all listings by Harcourts in Christchurch.

“We’ve called 49 auctions this month which is up considerably on the same time last year when there were 30 auctions. For the year to date, Harcourts Holmwood called 428 auctions, with 366 sold, 36 had been withdrawn and five currently under contract.

“We’re expecting this sort of activity to continue into the New Year. The summer time is always popular but this is far above the usual interest at this time of year.”

Jenkins said that auction was the chosen method of sale across a wider price bracket than previously.

“Three years ago people were loathe to auction anything above $1.5 million. We previously didn’t take those more highly priced properties to auction because buyers were relatively few but now there are a lot more people looking to spend that money on property in Christchurch.

“In a market where it is hard to price property, auctions are proving very popular because they’re transparent for both our vendors and our buyers. Auctions outsell any other form of marketing over a six week period. Properties marketed in this way attract 3-4 times the number of potential purchasers.”

Jenkins said there was strong demand for properties priced $400,000 and above, with investors continuing to seek houses in the mid price bracket. Higher building costs were also fuelling the demand for existing properties.

While there had been a slight lull immediately following the introduction of the new deposit restrictions, Harcourts Holmwood already had 14 auctions booked for its 29 January 2014 Gala - an entry level and investment auction.

Harcourts Holmwood auctioneer Phil McGoldrick said that auction marketing was in demand because it helped clarify decisions.

“A growing number of people have now had their properties repaired by EQC or their insurance companies. For many, this has meant accelerating the plans they had to sell their homes in two or three years’ time. They’re now deciding to make the move while their homes are in a more pristine condition.

“We’re increasingly finding that people just want to get on with their lives. For those who’ve been fortunate enough to have their claims settled, they want to make plans.”

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About Harcourts Holmwood
Harcourts Holmwood was established in 1991. It has five offices in Christchurch (Fendalton, Merivale, St Albans, and two in Ilam) including property management and a specialist rental office, and two apiece in Gore and Invercargill.

ENDS

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