Tauranga home values have jumped 3.3 per cent. Photo/File
Tauranga real estate experts say now is a good time for first home buyers to step on to the property ladder as the market began to flatten out.
The latest QV House Price Index showed home values in Tauranga jumped 3.3 per cent year-on-year and 1.2 per cent in the past three months. The average value in the city was $709,746.
The Western Bay of Plenty market rose 0.9 per cent year on year and 0.4 per cent in the past three months, with the average value in the district now $633,158.
The Rotorua market increased 7.4 per cent year on year and 1.1 per cent in three months. The average value in the district was $434,253.
Simon Anderson, chief executive of Realty Group, which operates Eves and Bayleys, said there were a lot more first home buyers coming into the market.
"I think some first home buyers have become more organised with their finances and all of the heat has come out of the market," he said.
Anderson said there was plenty of stock available in what he called a "steady as you go" Tauranga market.
"Top end properties are still selling well in key locations and interest from Auckland buyers was slowing," he said.
First home buyer activity had also lifted in Rotorua, Anderson said. "They perceive it to be a better value."
Tauranga Harcourts managing director Simon Martin said it was a good time for first home buyers to get onto the property ladder.
"They are not competing with as many investors and it is a very stabilised market. You are not going through a rocketing market so they can make more informed decisions without missing the boat," he said.
"The interest rates are also competitive, which is really helping first home buyers on to the property ladder."
Martin said agents were seeing good supply and demand of property within the Tauranga market.
"We have still got people moving to town and more properties being built here, so there is a steady supply of properties and the demand is still there," he said.
General manager of Tremains Bay of Plenty and Waikato, formerly First National, Anton Jones said investors were leaving the market, which opened the doors to more first home buyers.
Jones said proposed changes to rental property rules had made investors feel "a bit nervous" about buying.
"Few are selling because it is getting a bit too difficult, which has given the opportunity for first home buyers to come into the market," he said.
QV property consultant Derek Turnwald said Rotorua's residential market was experiencing "reasonably strong" demand, particularly in the $220,000 to $450,000 price bracket.
"Three and four bedroom dwellings in all suburbs and residential units around the central city are in strong demand and are usually selling in multi-offer situations," he said.
Turnwald said there was a continued lack of properties being listed in all value ranges, with "gradually rising" stable sale prices.
LJ Hooker Rotorua director Malcolm Forsyth said the best time to get into the market was now as the market had "flattened out".
"No one has a crystal ball and can tell what the market is going to do," he said.
"But if you leave it for another six months to save money, prices are only going to be higher. It is definitely a good time to buy."
Forsyth said there had been good buyer activity in the mid-$300,000 to $400,000 price bracket.
"I think the first home buyers have always been out there, they just seem to be making more decisions," he said.
Bay of Plenty home values
Tauranga
Value: $709,746
12-month change: 3.3 per cent
3-month change: 1.2 per cent
Since market peak in 2007: 47.4 per cent
Western Bay of Plenty
Value: $633,158
12-month change: 0.9 per cent
3-month change: 0.4 per cent
Since market peak in 2007: 40.5 per cent
Rotorua
Value: $434,253
12-month change: 7.4 per cent
3-month change: 1.1 per cent
Since market peak in 2007: 47.9 per cent