Estate agents tip frantic summer

Real estate agents are predicting a storm of activity in Tauranga after mixed results in the property market last month.

Twenty-two more homes were sold across the Tauranga, Mount Maunganui and Papamoa areas last month compared with October last year.

In Mount Maunganui and Papamoa, there were 64 sales last month, up from 53 in September and up from 59 in October last year.

But Tauranga's October figure for house sales was the year's second-worst monthly total.

Latest Real Estate Institute of New Zealand market statistics show there were 91 house sales in Tauranga last month - a 14.2 per cent drop on the month of September when 106 houses sold and a drop on the 2011 average so far of about 100, but ahead of the 74 sold in October last year.

Neville Falconer, LJ Hooker principal and former national vice-president of REINZ, said the Tauranga sales figures were lower than expected.

"That's the lowest since February. The average for the past 12 months is 97.

"Most of the last three months has been in a band of about 100 to 110 houses sold per month, so 91 is lower than we would have expected," he said.

The beginning of spring usually brings with it a flurry in the market but that hasn't yet happened this year, he said.

"Typically after the blues of the winter time, what that translates to normally is more listings on the market and more sales. That hasn't happened this year."

Mr Falconer said the market was turning into a good one for buyers as more houses were being listed than there were buyers.

"It's favouring buyers ... The only issue for a buyer is having secure employment. It's a fantastic time to enter the market.

"More sellers are keen to sell and it's beginning to show a drift towards a buyers' market," he said.

Tauranga Harcourts franchise owner Max Martin agreed the market was ripe for buyers as prices and interest rates were good for those wanting to enter the market.

"The price is lower and the interest rate is lower, it's a fantastic time to buy.

"If you get a $300,000 house it's only $16,000 in interest, which is less than the rent would be," he said.

Karen Worley, group sales and marketing manager with Realty Services, which operates Eves and Bayleys, said the October figures could be deceiving because many houses have recently been added to the market and might not show in the statistics until the new year.

She said the Mount Maunganui and Papamoa market had been stable but Tauranga was in flux with a large increase in new stock recently entering the market.

"I'd have to say I'm surprised the Tauranga figures are down," she said.

"There's more properties for sale than there has been for some time.

"Activity around all our branches at the moment is high, in listings and sales.

"It's not feeling like anything's slowing down.

"I think November will be an excellent month for real estate - it's certainly shaping up that way."

She said it could take six to eight weeks for properties to sell once they reached the market.

"I would expect this summer's sales would be uncharacteristically strong."