Buyers are encouraged to their due diligence before making a purchase. But what does this really mean? OneRoof's Need to Know's Brigitte Purcell on what you should be keeping an eye on.
Rotorua's property values have been labelled a "real concern" as new data shows near-stalled growth - but experts say homeowners should not hit the panic button just yet.
New figures from OneRoof's latest House Price Report showed values in 26 out of 49 suburbs in Rotorua dropped in the pastthree months, by as much as $86,000.
OneRoof editor Owen Vaughan. Photo / NZME
OneRoof editor Owen Vaughan said Rotorua's average property value rose a "negligible" 0.4 per cent - or just $3000 - in the quarter to $758,000 from $755,000.
The average property value in Lake Tarawera, the city's most expensive suburb, fell 5.3 per cent to $1.5 million from $1.6m.
"Sales in the last three months have all been at the lower end of the market, which suggests investors were moving on some of their stock.
James Wilson, director of valuation at Valocity. Photo / Supplied
"It might look like the values are coming off the boil but in reality, it's just changing sales composition."
Wilson said investors had pulled back and tougher credit laws and rising interest rates had negatively impacted first-home buyer activity but he said the stagnation was likely to be temporary.
"Of course, in saying that, there is a lot more caution in the market now than there was 12 or 18 months ago, so Rotorua won't be immune to that."
Rotorua Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / Andrew Warner
Rotorua Professionals McDowell Real Estate principal Steve Lovegrove said the percentage of properties selling in the higher price bracket was much higher than in the past five years and there were also fewer lower-priced properties selling.
He said Rotorua's prices were not "crashing and burning". "However, the market is definitely showing signs of cooling off."
Lovegrove said rising interest rates and Covid-19 was a "cocktail recipe for buyers" to become more subdued.
"People are a little more fearful of borrowing more money. They don't want to submit themselves to additional costs in the light of fuel, food and other inflationary pressures on the everyday man on the street's pockets."
But he said demand for property will be reinstated once the borders reopened and there was "quite a high chance" people will be seeking to buy in Rotorua.
"I think we are going to see a slowdown for another six-to-eight weeks of people pausing their activities. But as we progress towards winter, I think we will get more pressure on the market and some activity come back.
"But I do think the market has hit its peak and I think we are in for an interesting year."
Real Estate Institute of New Zealand Rotorua ambassador Ann Crossley. Photo / Stephen Parker
Real Estate Institute of New Zealand Rotorua ambassador Ann Crossley said the housing market had "got harder" since November.
Crossley, who was also the First National sales manager, said there was a lack of buyers for mid-priced properties in the $700,000 mark.
But, she said, first-home buyers and investors were showing interest in a "good number" of properties priced between $400,000 and $600,000.
"And those ones at the top end are owner-occupiers who are buying bigger homes. It is that mid area that is the hole in the market at the moment."
Ray White Rotorua's principal Jacqueline O'Sullivan. Photo / Supplied
Ray White Rotorua's principal Jacqueline O'Sullivan said stock levels were the highest in two years but properties between $500,000 and $700,000 were sitting on the market for longer than usual.
O'Sullivan said first-home buyers were also pulling back on making offers due to banks introducing stricter lending rules.
"We still get multi-offers on properties but it seems to take a bit longer and it seems to be a lot less.
"Over the last two or three years, we used to have up to 10 multi offers on the same property. Maybe now we get one or two."
Properties were still selling for "good prices" but she said a property in Owhata recently went under contract for under $375,000.
"I haven't seen that sort of level on residential properties for a long time."
Tremains Rotorua sales manager Mark Nicol. Photo / Supplied
Tremains Rotorua sales manager Mark Nicol said the number of listings in the region had "jumped dramatically".
Nicol said more investors were selling because they did not see any "medium-term-hold" in their residential properties.
However, he said out-of-town buyers were still eyeing up Rotorua.
"Rotorua is an area that is poised for a lot of people to sit up and take notice of.
"We played second fiddle a little bit to Taupo and Tauranga, and Rotorua was seen as a secondary location. But it is very quickly changing."
'Sacrificed a lot'
Venkat Anagani, his wife Sowyne and daughter Venya are due to move into their KiwiBuild home on March 13. Photo / Supplied
Venkat Anagani and his wife Sowyne struggled for a year to save up enough money to buy their first home.
In just over a week, they will get the keys to their new property.
Anagani, 34, said he and Sowyne tried for a long time to find a property they liked within their $550,000 budget. But in April last year, they were selected for the KiwiBuild ballot.
"It ticked all the boxes of our criteria - three-bedroom, brand new, and it is under $550,000. So we thought okay yes, let's go ahead," he said.
Anagani said the pair "sacrificed a lot" to save for the property, aiming to put 50 per cent of their weekly income towards their house deposit.
"We managed it do it, and to be honest I think we struggled for a year to save up because we know our ultimate goal is to purchase a property.
"Savings wise, because we got our resident visas in 2020, we do not have any KiwiSaver. All the funds we paid towards the deposit was our complete savings."
