Bay homes earning more daily than workers

Tauranga houses are earning more daily than the average worker. Photo/file

Bay homes are earning almost $80 a day more than the average Bay worker.

The median wage in the Bay is $120 a day - and the median house price in the Bay grew $197.90 a day.

That means Bay houses are earning just under $78 a day more than the average worker.

The median annual wage in the Bay of Plenty was $43,836 as of June and the median house price growth in the region as of September was $72,250.

These figures were drawn from the most recent Statistics New Zealand labour market data and median house price figures published by the Real Estate Institute of New Zealand (REINZ).

The situation is worse in Waikato, where homes are earning $88 more a day than the workers. Aucklanders fared better, their houses earning $7.90 more a day.

Ross Stanway, chief executive of Eves and Bayleys Real Estate, said house prices outstripping wage growth had been the case in the Bay for some time.

"I think that highlights firstly, the rapid increase in house prices and secondly, the need for wages to increase.

"There has been an increase in the median wage, but obviously it didn't and couldn't match the lift in house prices."

Mr Stanway said this made it tough for people, particularly those wanting to buy their first home, but it also highlighted how many people were moving to the Bay for jobs and various other reasons because of the region's popularity.

"There's a good side and a tough side."

Mr Stanway said home owners that sold their property for a good price usually still had to buy another property so depending where they moved to "it's not all necessary beer and skittles".

Greg Purcell, franchise owner of Ray White Realty Focus in Mount Maunganui and Papamoa, said these figures were no surprise considering some house prices had shot up hundreds of thousands of dollars in the Bay.

"Property owners by default have made a lot of equity in the last two years or so. The big question is - how long will this keep up for?

"The top end is still selling well but since the latest LVR restrictions were added, the middle to bottom end is slowing."

Mr Purcell said this skewed average price statistics as, proportionally, more higher-value properties were selling.

"The entry level stuff six months ago, that was really racing out the door. It's not at the moment. We have interest but that sector of the market has been affected. "

REINZ spokesman Bryan Thomson warned against using median house prices as a gauge for first home buyers, who were more likely to target cheaper, entry-level properties.

Thomson urged house hunters to know their financial limitations, decide what was critical in a property and be flexible on location.

- Additional reporting Lane Nichols, NZ Herald