One real estate agent told NZME their sales team had sold dozens of Tauranga properties already in September, each one above $1 million. Photo / Mead Norton
One real estate agent told NZME their sales team had sold dozens of Tauranga properties already in September, each one above $1 million. Photo / Mead Norton
Tauranga's median house price climbed $35,000 - about $1129 a day - last month, new data shows.
One real estate agent told NZME their sales team had sold about a dozen of properties already in September and each one had been above $1 million.
The latest Real Estate Institute ofNew Zealand (REINZ) report showed the beachside city was bucking a national trend of falling house prices.
The median house price in Tauranga climbed 3.8 per cent to $960,000 from $925,000 in July.
But it fell one per cent year on year from $970,000 in August 2021.
In Rotorua, median house prices rose 6.3 per cent - or $40,000 - to $675,000.
But the national median fell from $810,000 in July to $800,000 last month, equivalent to around $322 a day.
Tremains Bay of Plenty managing director Anton Jones. Photo / George Novak
Tremains Bay of Plenty managing director Anton Jones said median house prices had fluctuated over the past few months with figures skewed by multiplw larger sales or vice versa.
"If you have got your ducks in a row, it is a good time to buy."
First National Real Estate Tauranga general manager Cameron Hooper. Photo / George Novak
First National Real Estate Tauranga general manager Cameron Hooper said the data showed the city's market was stabilising.
Hooper said the number of properties sold across Tauranga (187) and the Western Bay of Plenty (45) was about 230 combined for August.
"As long as we are selling above 200 combined we are doing well."
Their sales team had about 1600 properties listed for sale across Tauranga and the Western Bay and they had the same in April.
"That is really good. We have not been flooded with new listings but what we are listing we are selling."
Hooper said it was a reflection of the market finding its "new norm".
"Sure things are taking longer to sell but it is not all doom and gloom."
Lifestyle property sales were the top performers with anything under $2m getting strong interest, he said.
"It is not unheard of to have 10 to 15 groups through those homes."
First homebuyers, however, were slightly more hesitant.
"They can't afford to have their KiwiSaver and deposit tied up in a negative equity situation. ''They want to buy with confidence."
But he said for buyers who were looking long term, now might be the best time to shop around.
"If they can afford it, then have a go."
REINZ regional director Neville Falconer. Photo / Supplied
REINZ regional director Neville Falconer said stock levels remained high, up 170.2 per cent annually, and new listings also increased 62 per cent.
"Bay of Plenty salespeople say they are still proactively managing vendors' price expectations."
Falconer said Rotorua buyers were waiting for easier access to finance and for prices to ease.
"More sales were subject to conditions such as house sales in August."
Attendance at open homes was inconsistent and the most active buyer groups over the course of the month were owner-occupiers and first homebuyers, he said.
"Rotorua salespeople say that the local election coming up in October may interrupt the region's usual spring lift in activity."
Bayleys Rotorua branch manager Beth Millard said Rotorua bucking the trend was a "pleasant and well-deserved" change considering the city generally tracked well behind others.
"The top end in Rotorua has increased pretty dramatically over the past couple of years.
"Conversely what has happened with this market correction is the volume of lower end sales has significantly increased in 'higher value' competing cities."
Millard said stock levels were more than double what they were this time last year, and this was starting to make an impact, taking the heat out of the market.
"During the last big market high, we all learnt a new phrase FOMO - fear of missing out. This has all but gone except for unique properties."
Vendors with their properties for sale now were generally a little more stressed than previously as homes were taking longer to sell.
"Most offers are conditional and with bank lending continuing to be a little tougher to secure, people are naturally a bit more wired."
Millard said there were more buyers in the market, however, there was more to choose from so they were not overly quick to act.
"Further, often because of bank imposed conditions they are a little more cautious about proceeding to paper without having their ducks lined up in a row first."
Attendance at open homes had been a "real mixed bag", she said.
"There is certainly a higher level of attendance at properties that are new to the market than those that have taken a bit longer to sell.
"The mid to higher end of the market appears to be tracking higher levels of activity than the entry level properties."
Bay of Plenty
Compared with August 2021 • Median price up 6.5 per cent • Sales count up 2.5 per cent • Days to sell increased 27 days
Compared with July 2022 • Median price up 4.1 per cent • Seasonally adjusted median price up 2.6 per cent • Sales count up 1.5 per cent • Seasonally adjusted sales count down 0.6 per cent • Days to sell increased 3 days
