The number of Western Bay house sales remains steady, despite a flurry of activity with lower-priced homes changing hands, a local agent says.
New house sale figures released yesterday by the Real Estate Institute of New Zealand (Reinz) show July produced a steady month of sales in the Western Bay but a bumper month across New Zealand.
Tauranga sales rose to 126, one more than in June. However, the median sales price dipped $30,000 last month to $315,000.
Harcourts Advantage Realty managing director Simon Martin said the local market was "steady as she goes".
The Reinz figures follow the Government unveiling of changes to the KiwiSaver and Welcome Home schemes designed to help more Kiwis into homes.
Reinz regional director Philip Searle said the wider Waikato/Bay of Plenty region was seeing solid increases in sales' volumes, although price increases remained constrained.
First home buyers and investors were active across the region, with a number of cities and towns reporting shortages of good-quality listings.
LJ Hooker Tauranga principal Neville Falconer said the median price was lower than he would have expected it to be.
"It would mean more lower-value properties were selling than high-value. With 126 properties at a median of $315,000, that means half were selling for less than that.
"There's been a bit of talk about interest rates moving up next year, there could be some people acting on that. It could be first home buyers and others who are more interest rate sensitive."
Low prices and the sales' volume could have something to do with the season.
Ray White Papamoa and Mount Maunganui principal Greg Purcell said it was likely there had been a run of cheaper houses in July.
"Or, conversely, this time last year there was a run of higher-priced properties. In real time, it's not like there's been a decrease in price so I can only imagine that's what it is."
Mr Purcell said July had been quite a good month.
Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves, said there was a trend with house volumes in Tauranga.
"The trend is carrying on in the same direction in terms of volume increases. One factor of the market here to date is there's little price alteration over the last few months. Volumes are increasing, prices are remaining relatively steady and there's a good balance of supply and demand. We have a good, steady market in this region."
Reinz head Helen O'Sullivan said it was the most active winter the residential real estate market had seen for a while.
Nationwide, there were 6777 house sales in July, a six-year high for that month. The national median price fell $9000, 2.3 per cent, compared with June to $385,000. It is now $15,000 below the record median set in March.