A resurgence in house sales in Tauranga has flowed into the new year.
Latest New Zealand Real Estate Institute (REINZ) figures show 93 homes changed hands in two-thirds of the city last month, a 41 per cent increase on the sales in January last year.
Over the past six months the sales volume, more than 90 each month, has been consistently above the previous corresponding period - the low was 74 last October.
The coastal strip of Mount Maunganui and Papamoa has fluctuated a little, but it has also seen consistently better sales.
After a busy December that produced 75 sales, the number dropped to 46 last month but still just ahead of the 44 sales in January last year. The Mount and Papamoa had other strong months last August with 80 sales and November 79.
Greg Purcell, principal of Ray White Real Estate at the Mount and Papamoa, said he had always been a bit sceptical about January.
"The area has an influx of visitors over the holiday season and it brings some interest in property," he said. "But I think the best you can hope for is reconnaissance being done rather than sales being made."
Mr Purcell said business confidence was improving and the residential property market should build on this ... "not spectacularly but people are happy with steady and predictable".
He said the buyers were out there and new listings were quite difficult to get at the Mount. "If this carries on, then there will be a shortage of listings."
The latest median selling prices also moved in different directions on both sides of the harbour. At the Mount and Papamoa the median last month fell to $388,750 from $418,000 in December. The other medians over the past six months were also $390,000 and below.
In the other parts of Tauranga, the median rose to $360,000 from $315,500 in December. Again, the median was similar to August, October and November last year.
Simon Martin, managing director of Harcourts Advantage Realty, said the January figures showed the market was heading in the right direction.
"And from what we see at the coal face it'll continue into February. All the economic indicators are going in the right direction - we've been through the so-called recession [and] everything seems to be a lot more positive," he said.
With the general election sorted and the Rugby World Cup over, things were more settled.
"There's confidence, there's a stable government. The dairy farmers, and everyone in general, are doing well. It's certainly encouraging, it's great for the town," he said.
Ross Stanway, spokesman for Eves Realty and Bayleys, said the market was continuing the consolidation "we've seen in the past few months. It's certainly steady as she goes, though there was a bit of a backlog in demand."
He said cash buyers were definitely out there and the market, including rental, was starting to see a shortage of homes.
Neville Falconer, principal of LJ Hooker Tauranga, said all sorts of (economic) indicators are looking good and the future was looking positive. "Buyers are genuinely interested provided they have employment, interest rates are favourable and prices are staying moderately flat."