Housing market's slight pick up

Western Bay real estate agents have welcomed a pick-up in the market this month after the number of house sales and median prices in the city plunged in January.
Latest real estate figures reveal a total of just 66 homes sold in Tauranga city in January, down on the previous month's tally of 84 and also on the 79 sales in the same month last year.
The median price also fell from $379,500 in December to $320,000 last month, a figure also down on January 2010's median of $349,000.
Across the harbour at Mount Maunganui and Papamoa, the median price eased slightly from $410,000 in December to $406,250 last month and, at 44, sale numbers were down on the 49 in December but up on the 40 in January 2010.
January's sales volume was among the lowest on record in both parts of the city - comparing with other glum months for Tauranga's real estate market in the past decade.
Tauranga hit 64 sales in December 2008 and 66 sales in January 2009, and 74 sales in both in October 2010 and April 2008.
Mount Maunganui and Papamoa had 41 sales in May 2008, 43 in July 2000, and 46 in both June 2008 and December 2008.
Eves Realty chief executive Ross Stanway said there had been a "quiet and steady increase in confidence" in the Western Bay market.
There had been an increased activity over December, but the market had been quieter in the first half of January, which Mr Stanway said was considered "a half month in the real estate world" because it fell on the holiday period.
Activity had picked up again in the the second half of January and had continued on in February, he said.
Tauranga Real Estate Institute spokesperson Craig Hilton said there had been a "good lift in buyer activity".
"I guess generally, sellers appear to be familiar with prices and the market place now. Obviously prices on average have dropped from a couple of years ago. We're also seeing an increase in investors coming back into the marketplace - and we are seeing first home buyers active in the market place as well."
Harcourts Advantage Realty franchise owner Max Martin described January as "pretty quiet overall".
"Lately, there's a bit of action around Papamoa and the Mount, over this last two weeks especially, and I think our numbers are going to be strong for February.
"I think it's a good time to buy. Interest rates are low, so why wouldn't you want to buy? There are very few new houses being built at the moment, so people will just have to start buying and selling again."
Mr Martin believed auctions remained a good way to sell a home.
LJ Hooker Papamoa principal John O'Donnell said he did not see any change in the market for at least six months.
Outside the city in the Western Bay of Plenty district, the median price rose from $367,500 in December to $392,500 in January and was up on the median of $361,000 for January 2010.
From 46 in December, sales volumes eased back to 44 last month - the same total as in January 2010.
The Real Estate Institute's grim figures for Tauranga came as QV's latest Residential Price Index for January showed property values had slid backward by 2.2 per cent over the past year in the city.
QV Tauranga valuer Shayne Donovan-Grammer said values had continued to soften over recent months. "At this stage there are no indicators that suggest the market will improve in the coming months."
Mr Donovan-Grammer said while there was a lack of activity, it was "not uncommon" for the time of year.
"Speculative property, namely apartments and sections which were developed during the economic heights a few years ago, are in oversupply and therefore are experiencing the worst during the current downturn.
"There has been a noticeable migration of both buyers and tenants to locate near well regarded schooling leading into the new school year. As the city grows it will become more of a factor in buyers' decision making in coming years," he said.