Rotorua has 'exceptional' month for house sales

Some estate agents warn that house sales may slow this month because of pre-election concerns.

August was an "exceptional" month for house sales in Rotorua, but some real estate agents are predicting a slower September as buyers and sellers experience pre-election jitters.

More than 100 houses sold in Rotorua last month, a jump up from the 85 sold the month prior.

Real Estate Institute of New Zealand figures, released today, show a 23.5 per cent jump in the number of houses sold in August (105), compared with July (85).

However, last month's house sales were still less than the same time last year when 136 houses sold.

The median price also saw a slight jump, going from $341,000 in July to $350,000 in August.

The median price was $320,000 in August 2016.

LJ Hooker Rotorua principal Malcolm Forsyth said uncertainty around the election had put a stall on the market in September.

"September has been a bit slower than August. The Loan to Value Ratio (LVR) changes have put the brakes on for investors and some buyers and sellers have election jitters, not wanting to make a move until there's an outcome.

"I think once the election is over we will be in for a strong and robust spring. There is still good buyer activity and interest in new listings. People are still out there scanning."

Steve Lovegrove, Professionals McDowell Real Estate co-owner and principal, said there was still growth in the median price, but the increases were at a "sensible rate".

"We are still facing the ongoing issue of lack of stock, but we have seen some new listings coming on board.

"We were surprisingly busy last month. We had an exceptional month for sales. This month a lot of people are sitting back, so far it's been the polar opposite to August."

Mr Lovegrove said it appeared people were being more cautious, but he wasn't seeing any aspect of the market drying up.

"There are always multiple factors influencing the property market but you can assume one of those is the election and the uncertainty around who will be in government."

He said overall Rotorua was still in a positive position.

"We are on the precipice of new developments which will only be good for the city. It's time people had confidence in Rotorua. We are on the edge of an exciting time as the rest of the country and world start to notice us more."

Simon Anderson, chief executive of Realty Services, which operates Eves and Bayleys, said a jump in sales in August could be down to "people getting out of the winter blues".

"August was a good month across the whole of the Bay of Plenty. In Rotorua there were a number of transactions at the top end of the market, keeping that median price up.

"The election is making people uncertain but I think by the end of September, October we will see a good build-up of activity.

"The investor market has cooled considerably but the silver lining to that is first-home buyers have the opportunity to get on the property ladder."