Median house price decrease for Rotorua

Media house prices and volumes have dropped in Rotorua, Reinz says. Photo/file

Median Rotorua house prices have decreased and fewer homes have been sold in October this year in comparison with the same month in 2016.

In October last year, the median price for a Rotorua home was $371,500, which dropped to $354,000 October this year, according to new data from Reinz. However, $354,000 was a nine per cent increase from $335,000 in September 2017.

The number of Rotorua homes sold last month was 84, a decrease from 109 in October 2016, although an increase from 77 in September 2017.

Rotorua's month-on-month sales volume increase went against the decrease experienced Bay of Plenty-wide.

The number of days to sell a home eased from 37 to 40 throughout the Bay of Plenty.

But, according to Simon Anderson, chief executive of Realty Services which operates Eves and Bayleys, the figures show a continuation of good news, not bad.

"I'm not surprised sales volumes are down from 2016 as last year was an exceptional year," Anderson said.

"I am a little surprised to see an increase from September to October as I thought this would have been steady, but it is only a matter of seven properties.

"What we are seeing is more properties coming to the Rotorua market and a lot of buyer activity, especially with first-time home buyers as opposed to investors.

"These are genuine buyers who are able to get into their first home in Rotorua and are prepared to travel to work."

Anderson said business confidence remained high, pushed by a strong commercial sector and the opening up of residential areas for development.

"Two years ago the Rotorua market was reasonably quiet but this has continued to be good news for some time now.

"There are very few rentals available, especially top-end rentals, which is another sign of confidence."

Harcourts Rotorua principal real estate agent Hielke Oppers said month-to-month fluctuations were expected.

"If there is an increase in sales of investment properties or an increase in high-end properties, these fluctuations will result," Oppers said.

"There is still a lot of activity in Rotorua with the majority of properties receiving multiple offers, some are over market value.

"I would say the decrease in sales would be attributed to lack of quality stock as opposed to lack of buyer interest."

He said first-time home buyers were very active while investors were sitting on the fence a little, largely because of the change of Government and potential change of rules and regulations.

Rotorua Professionals principal Steve Lovegrove said the median price decrease seen when comparing October 2016 to October 2017, could not be seen as a slowing market.

"October last year was an exceptional month for high-end sales particularly due to the government introducing the new LVR threshold to the market.

"We are definitely seeing more Rotorua properties being offered on the market. Anecdotally, there were 100 more listings in October so the stock of available houses has increased."

He said Rotorua remained a desirable destination, especially for first-time home buyers, who now had more a choice of properties than they did earlier this year.

"Vendors wanting to attract buyers need to be aware of what they are competing with as far as price goes."