Rising tide of Auckland buyers lifts house sales

Mount Maunganui and Papamoa Ray White Realty Focus franchise owner Greg Purcell says house sales have gone through the roof thanks to interest from Aucklanders. Photo / File

"Rockstar prices" and an influx of Aucklanders have been credited for a "massive" surge in house sales in the Bay of Plenty.

The volume of house sales in Mount Maunganui and Papamoa jumped 81 per cent in October compared to the same month last year.

Figures released by Real Estate Institute of New Zealand (REINZ) revealed the increase was the result of 157 homes selling, with a median price of $539,000.

In Tauranga, the volume of sales rose by 44 per cent with 133 sales at a median price of $470,000.

Mount Maunganui and Papamoa's increase matched that of September's 81 per cent rise - a record-breaking high not reached since REINZ began recording statistics.

Mount Maunganui and Papamoa Ray White Realty Focus franchise owner Greg Purcell said the change in sales was huge, and much of it was down to the influx of Aucklanders.

"Never have I seen such a strong cord between this area and Auckland," Mr Purcell said.

"We've always had that influence from Auckland but usually that was paired with interest from the Waikato.

"That has been completely trumped by the Auckland market.

Mr Purcell said while it was boom time in the Bay, people selling should not let their price expectations get too high.

"It's still a good market, just don't get ahead of yourselves. People have become used to rockstar prices and now that's become the norm," he said.

"It's natural that people want to view their own home with rose tinted glasses but keep your feet on the ground. We've done extremely well in the last 12 months. Everyone should be happy with what's happened."

Eves and Bayleys Real Estate chief executive Ross Stanway said the increase in sales was "very, very significant".

"The new stock that's being added at places like Papamoa East, the Lakes, Omokoroa. That's a healthy sign that there's plenty of confidence there.

"As long as Auckland is struggling to get on top of their housing problem, as long as interest rates remain low and stock keeps coming, the market will continue."

Mr Stanway said there had been a lot of comment that there had not been many homes in the market "but what's happening is homes are selling quickly".

"We are not seeing huge numbers of signs out the front of properties because properties are selling so quickly," he said.

"It's almost as if a bit of a switch has been hit and people have realised what part of the world they want to be in."

Tauranga Harcourts managing director Simon Martin said the number of sales reflected the fact more people were moving into the area.

"There's people moving from all over ... one thing we haven't got now is people leaving, more are staying and more are coming in."

REINZ regional director Philip Searle said demand across the region continued to be strong with continued demand from Aucklanders plus a more general lift in the number of buyers and prices.