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Home / Bay of Plenty Times

Election lifts Tauranga's property market

By Amy McGillivray and Cassandra Mason
Bay of Plenty Times·
23 Sep, 2014 10:00 PM2 mins to read

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Reports show the cost of buying a house in Tauranga has improved. Photo / Mark McKeown

Reports show the cost of buying a house in Tauranga has improved. Photo / Mark McKeown

Home affordability in Tauranga has improved over the past three months - with August being the best month in nearly a year.

Confidence in the property market has also surged after the weekend's landslide election result.

The latest Roost home-loan affordability report shows the cost of buying a house in Tauranga improved slightly in August on the previous month and was 8.5 per cent more affordable than June when unaffordability reached a 12-month high.

The report comes as real estate chiefs in Tauranga and Auckland report a surge in confidence in the property market after National's sweeping election win. The number of sales has improved and more prospective buyers attended open homes.

The improvement in affordability is being attributed to more competitive mortgage payments because house prices have not fallen.

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Roost Home Loans spokeswoman Colleen Dennehy said banks were competing hard for business, meaning good deals for customers.

Tauranga Harcourts managing director Simon Martin told the Bay of Plenty Times there had been a number of sale and purchase agreements signed since Sunday. Mr Martin said it seemed people were out looking at their options in the weeks before the election.

"Now with the result in they have sort of committed to it."

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Agents had also reported more people through open homes on Sunday, he said.

"I think it was because the result was so definite. In years gone by there was always that period of negotiation," he said.

"It's very positive for real estate."

Tauranga Harcourts general manager Nigel Martin had also noticed open homes were busier on Sunday. "There's more buyers out there at the moment and more people putting their houses on the market already," he said.

Auckland real estate company Barfoot & Thompson also reported busier open homes on Sunday.

Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys, said the average house price in the city had increased by about 5 per cent in the last two years.

House and land packages were increasing the supply of houses which would help improve affordability, Mr Stanway said.

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