Rotorua's median house price was now $487,000. Photo / Andrew Warner
Rotorua's median house price was now $487,000. Photo / Andrew Warner
The Bay of Plenty property market experienced its busiest July in five years, with Rotorua's house prices climbing close to half a million dollars.
The Real Estate Institute of New Zealand's latest data showed Rotorua's median house price jumped 9.4 per cent to $487,000 from $445,000.
Rotorua real estate expertssay even they have been surprised by the rise in house prices and add the desire to own property hasn't fallen off in level 2.
REINZ chief executive Bindi Norwell said the Bay had its busiest July in five years, with the number of properties sold jumping 23.7 per cent year-on-year.
"We also saw solid price increases for Rotorua and Tauranga during July, reflecting the good levels of demand in the area," she said.
"The property market had a strong start to August, and we expect a good number of sales to continue, despite being in level 2."
First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / Stephen Parker
First National principal and Rotorua REINZ spokeswoman Ann Crossley said the jump in house prices was because of increased interest for property in upwards of $600,000.
"Even we are surprised by the prices being achieved."
However, she said since the return of level 2 there has been more of a "wait-and-see approach" to property.
"You could almost hear the town take a collective breath in and hold it."
Crossley said a shift to level 3 would mean some restrictions but she said the city would not cope if things moved to alert level 4.
"Our economy cannot recover from a second fall."
Simon Anderson, managing director of Realty Group, which operates Eves and Bayleys. Photo / Andrew Warner
Simon Anderson, managing director of Realty Group, which operates Eves and Bayleys, said moving into level 2 went "seamlessly" with templates already in place from the last restrictions.
"It's business as usual given we have already been through it."
Generally, he said there had been no disruption to the market with strong demand for good quality homes.
"Continued desire to own property hasn't fallen off in level 2.
Tremains Rotorua sales manager Megan Davies said it had been a strong market since lockdown.
"We have seen a very impressive bounce back since the lockdown ended with multi offers being normal."
Since level 2, Davies said there was a level of frustration with vendors wanting to get on with selling and buyers were still engaged.
"We don't think that people believe they will pick up bargains as Rotorua property continues to climb in value, so buying now is always the right time."
A return to level 3 or 4 would impact the property market once again, she said, but the recovery would be "fairly rapid" just like before.
"The housing market shortage of stock will always help Rotorua in a strong recovery," she said.
Harcourts Rotorua sales manager Colville Barbour said the past two weeks had remained normal and continued to be "a sellers' market" with strong buyer-inquiry, multiple offers and a shortage of listings.
"We don't anticipate any change going forward given the fundamentals of low-interest rates, LVR restriction removals and a steady rental market."
Barbour said a shift up the alert levels would mean the market would be "noticeably challenged" once again.
"[But] what we have learned from the previous lockdown is that once viewing restrictions are lifted the market recovers quickly."
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