Ross Stanway, Bayleys Real Estate. Photo/File
ROTORUA'S property market is raising eyebrows for the right reasons with $392 million worth of property sold in the past 12 months - and the number of houses sold in the past year up a whopping 52 per cent.
Figures released to the Rotorua Daily Post by the Real Estate Institute of New Zealand show that in the 12 months ending November 2015, 1318 properties sold in Rotorua compared with 865 for the same period the previous year and just 729 in 2011.
The total sale price was also up significantly with $392,110,459 worth of property sold in the year to November, compared to $250,162,508 the 12 months before that.
In other good news for homeowners, the median sale price rose by $5000 over the same period to reach $255,000 while the number of days to sell has dropped from 55 in the 12 months to November 2014, to 48 days.
There has been a steady increase in the median sale price for the region with figures showing a $15,000 increase since 2011.
Ross Stanway, chief executive of Realty Services, which operates Eves and Bayleys Real Estate, described the increase in sales volumes as a "huge leap".
Mr Stanway believed it was partly down to the growing attraction of the regions.
"Bay of Plenty, and Rotorua is a key part of that, has had all year some really positive publicity around economic confidence and growth.
"For Rotorua to have a volume increase of over 50 per cent, that is pretty telling."
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Mr Stanway said he believed it reflected an increase of awareness in the value for money as a place to live and invest and described it as a "very good story".
"Most people would be surprised by the extent of the volume increase. That is very significant.
"In a very positive way it would have raised a few eyebrows."
Mr Stanway said interest in the Rotorua property market was coming from across the board.
Investors were attracted by the strong rental market while there was also first-home buyer interest and people within the community upsizing and downsizing.
"I think the growth will continue. The extent is anyone's guess."
Ray White Rotorua co-owner and principal Anita Martelli said agents hadn't seen a year like this since the peak back in 2007.
"It's been wonderful for Rotorua. Everyone is so positive in the market place and it's good for the whole of town."
Ms Martelli said the flow-on effect of the busy real estate market was being felt by other sectors such as movers, banks and valuers, who were all busy.
"There's no signs that it is changing.
"Everyone has a vested interest in real estate if they are a home owner. It is good, there is a flow-on effect, values go up so it's good even for the ones who aren't selling."
Ms Martelli said there was interest across the board.
"Definitely investors are back on the scene, people are looking at upgrading to a bigger home or better location, a lot are coming in from out of town."
The Law Shop director Paula Lines said her company had noticed a big jump in conveyancing - particularly over the past six months.
"The last six months in particular have been chaotic in a good way."
Mrs Lines said the firm had taken on an extra staff member and if the high demand for conveyancing continued there was the potential to take on extra staff.
Real Estate Institute chief executive Colleen Milne said the number of houses sold in Rotorua over the past 12 months was very high for the region which indicated an "active, strong market".
"Rotorua can offer first-home buyers an opportunity to live in an area that is less fast-paced than Auckland but also with many lifestyle factors and a smaller city appeal.
"Low interest rates have also spurred many to purchase allowing first-home buyers a chance to get on the property ladder and also Auckland investors who are active in the Waikato/BOP region," she said.