Bay of Plenty property market has slow start to spring but agents optimistic 'upswing' on the way

The usual spring lift in the property market has been slow to arrive in the Bay of Plenty this year but real estate leaders are optimistic an "upswing" is coming.

The Real Estate Institute's report on September data, released this week, showed New Zealand's median house price rose 2 per cent annually, from $795,000 to $811,000.

In the Bay region there was a 3 per cent decrease to $849,000 compared to September last year. From August, there was a 5.1 per cent drop.

Rotorua's median price in September was $660,000 - down from $675,000 in August.

In Tauranga, it was $955,000, down from $965,000.

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Compared to September 2021, the Bay's sales count was down 19 per cent and the days to sell increased by 15 days.

Institute regional director Neville Falconer said local investors impacted by tax rules had continued to step away from the market.

"With less competition in the market, first home buyers and owner occupiers were most active."

Freshly listed properties were attracting good numbers at open homes but auction attendance was still subdued, he said.

Falconer said that while stock levels remained high and salespeople felt the spring lift was delayed, he still hoped to see more activity in the coming months.

Rotorua Professionals McDowell Real Estate principal and auctioneer Steve Lovegrove said the market had not gone back as "hard and fast" as expected and more transactions were likely to happen soon.

Rotorua Professionals McDowell Real Estate principal and auctioneer Steve Lovegrove. Photo / Andrew Warner

He said there had been no dramatic cool-off and he expected a "solid run" of property changing hands through to Christmas and into next year.

Lovegrove said he expected numbers heading to open homes would increase in coming months, and he was optimistic.

Tauranga Tremain Real Estate managing director Anton Jones said things had been slow going, which was in part influenced by high interest rates.

"Hopefully we're coming out of a difficult time but who knows with interest rates."

Expectations between vendors and buyers were also further apart, he said.

People were taking longer to find properties, given they had plenty of choice.

They were also taking time to find properties that better suited their needs.

Tauranga Tremain Real Estate managing director Anton Jones. Photo / George Novak

Jones also found numbers attending open homes were on the up, and between 40 and 50 per cent of interest had come from outside Tauranga.

Winter had been slow, particularly with all the wet weather, but Jones hoped the market would become more active as the weather improved.

"I'm looking forward to an upswing in coming months."

Tauranga First National Real Estate principal Rob Hooper said the investor market was still confused and cautious, and therefore slow.

But the market above the $1 million mark was showing more interest, and properties adjusted for the "new market" received a little more attention from buyers.

"The spring listing season appears to have been a bit muted this year, possibly due to the weather and the general uncertainty in the market," Hooper said.

Rotorua median price and sales count

Sept 2022: $660,000 (68 sales)
Aug 2022: $675,000 (66 sales)
Sept 2021: $650,000 (76 sales)

Source: Real Estate Institute

Tauranga median price and sales count

Sept 2022: $955,000 (183 sales)
Aug 2022: $965,000 (191 sales)
Sept 2021: $992,500 (209 sales)

Source: Real Estate Institute