PHOTO/FILE
Rotorua houses are being snapped up, in some cases before sale signs come out, after a record month of property sales.
Real Estate Institute of New Zealand statistics show 120 houses were sold last month - the highest number of houses sold in a month since 2007.
In July 2014, 72 houses were sold.
Ray White Rotorua co-owner Anita Martelli said there were a number of factors behind the increase, including an over-cooked Auckland market. "I put it down to people moving to Rotorua.
"There are a lot of sales under $400,000 but definitely a lot of first home buyers [are entering the market] as well as investors. This is because of the interest rates and market confidence."
She said there were instances of houses being sold before sale signs had gone out.
First National Real Estate Rotorua principal Ann Crossley said it was a great time to sell, with fewer houses entering the market, and multiple offers on houses.
"We looked at one house on Tuesday and it will be under contract today [Thursday], so they are coming in and going out.
"On one day we had three properties under contract, but nine contracts on those properties ... people have to make their minds up quickly.
"There are three different kinds of Aucklander - people who are semi-retired or older who are selling up and just buying something affordable and banking the nest egg, and then the people who can't afford to buy in Auckland at all, and then there's the people who have a home in Auckland and want an investment, and I think also first home buyers. On realestate.co.nz it shows there are 617 listings available and that's dropped - there used to be 1000 on there.
"It is getting harder because if you think back to those four groups, they don't put any houses into the market they just take houses out - there's just not that rollover. There are fewer listings coming on."
REINZ Rotorua district forum leader Ian McDowell, of McDowell Professionals, said house prices were gradually beginning to rise.
"It's not dramatic but they are crawling up and leaning the right way."
The statistics show a median house price drop from $276,000 in June to $250,000 last month, but Mr McDowell said this was a result of cheaper houses being sold.
Karen Worley, group sales and marketing manager of Realty Services, which operates Eves and Bayleys Real Estate, said the higher median house price for June was influenced by a couple of higher priced house sales.
"July is more an accurate for the Rotorua market.
"There are plenty of houses at the bottom being eaten up, so that will start to push prices up."