Tauranga's median house price dropped slightly to $902,000 in November. Photo / Mead Norton
Tauranga's median house price dropped slightly to $902,000 in November. Photo / Mead Norton
Some first-home buyers and those moving up the property ladder are taking advantage of a falling market, as Tauranga’s median house price continues to drop, experts say.
The Real Estate Institute of New Zealand’s (REINZ) latest data shows Tauranga’s median house price dropped 0.2 per cent - or $2000 -to $902,000 in November. Annually, it fell 9.8 per cent - or $98,000 - from its $1 million median in November 2021.
The Bay of Plenty’s median price dropped 3.7 per cent annually to $857,000.
Sales agents say there isn’t the usual spring flurry of properties coming to the market but they are starting to see more listings and better results in the auction room.
One local salesperson says it is the best time for first-home buyers to buy in a long time provided they can secure finance and service the debt while those struggling to get the tick of approval from the banks are waiting until the New Year to make a move.
“Open homes have been quiet, largely due to current market conditions and economic uncertainty. Buyers are finding it difficult to obtain finance in time, and some have indicated placing a hold on their buying plans until the New Year.”
Falconer said there was still a steady number of listings entering the market but there was no sign of the usual spring flurry in market activity.
“Local salespeople say that until economic conditions improve, they don’t expect a significant increase in buying and selling activity.”
Property Brokers Bay of Plenty regional manager Simon Short. Photo / Supplied
Property Brokers regional manager for the Bay of Plenty, Simon Short, said there had been a “volume change” in sales.
“We are seeing sellers starting to awaken to the probable price reduction ahead of us in 2023. They are starting to be more decisive with opportunities that are being presented now and not holding out for prices of yester-year being 2021.”
Short said as a consequence buyers were responding with multi-offers and good auction rates.
“In the last six weeks, our sale rate under the hammer is sitting at 90 per cent. That tells us buyers have got some urgency and want to capitalise on interest rates available now rather than speculate on 2023 rate rises.”
First-home buyers were also trying to get back into the market, he said.
“We are seeing some activity at the lower end of the market. There are some great opportunities for first-home buyers right now.”
Short said there had not been the usual spring lift in listings but there was a lot of stock sitting on the market from pre-spring.
Whakatāne’s property market had benefitted from a “migration of affordability” out of Tauranga, he said.
The number of properties sold in Whakatāne in November jumped to 36 from 20 in October, while prices climbed 21.9 per cent - or $129,000 - to $719,000 in November 2022.
“There is no doubt that is a vibrant market. It is a great part of the Bay of Plenty coastline. It doesn’t surprise me that there has been a wave of interest and prices have bucked the trend.”
Tremains Bay of Plenty managing director Anton Jones. Photo / George Novak
Managing director of Tremains Bay of Plenty, Anton Jones, said last month had certainly seemed a lot busier.
Some people were waiting to see if prices were going to drop further but others were keen to buy now.
“There certainly are two trains of thought.”
Jones said first-home buyers were looking but they were presented with a “double-edged” sword with rising interest rates.
“First-home buyers are definitely out there and if you are looking at buying your first home it is probably the best time in a long time to be buying a home given the prices dropping provided they can service the debt.”
Cameron Hooper - First National Tauranga director.
First National Real Estate Tauranga general manager Cameron Hooper said sales were typically down at this time of year and they tended to pick up again in February and March.
“That will be positive for everyone as the industry is doing it tough right now.”
Hooper said first-home buyers with advisors telling them to look long-term would be the only ones capitalising on current market conditions.
“They are buying things $100,000 to $150,000 cheaper than before,” he said.
“If they forecast four years from today, I bet my hat property prices will go up.”
There had not been a flood of listings come to the market and there was not a lot of interest at open homes, he said.
However new lifestyle properties in the $1.5m market were proving popular.
Managing director of the Realty Group, which operates Eves and Bayleys, Heath Young said the drop in prices of up to 10 per cent in some areas of the Bay of Plenty was good for first-home buyers and better results were starting to be seen in the auction rooms.
“All buyers at the moment have to weigh up these better prices with increased financing costs along with perhaps having to sell their own property.”
