Tauranga house prices increase nearly 7 per cent year-on-year

The Bay of Plenty was one of six regions to experience a new high in January. Photo/File

House prices in Tauranga increased 6.7 per cent year-on-year, while values in the Western Bay of Plenty increased only 3.5 per cent.

Tauranga house prices jumped from $600,000 in January 2017 to $640,000 in January 2018, according the Real Estate Institute of New Zealand's latest monthly report.

However, prices decreased 2.3 per cent month-to-month from $655,000 in December 2017 to $640,000 January 2018.

Western Bay of Plenty house prices rose 3.5 per cent from $565,000 in January 2017 to $585,000 in January 2018. But prices decreased 10 per cent from $650,000 in December 2017 to $585,000 in January 2018.

REINZ regional director Philip Searle said January 2018 was busier than January 2017 in
the Bay of Plenty.

"After the lull in activity during the election period, people appear to be getting on with their lives," Searle said.

Listings are slightly down, however, Searle said some investors were selling homes because of the impending new Healthy Homes requirements.

"We have people wanting to purchase, but they are just trying to find the right type of property for them," he said.

"The interest is mainly from younger people looking for holiday homes and people relocating from the cities for retirement."

The median price across the region increased three per cent compared to January 2017 and was one of six out of 12 regions to experience a new high in January.

Compared to December, sales volumes decreased 29 per cent, with sales count increasing more than 11 per cent in the Western Bay but decreasing more than 30 per cent in Tauranga.

There was only one more sale this month compared with January 2017, with Western Bay
sales increasing 72 per cent but Tauranga falling by more than 10 per cent.