Rotorua homes being snapped up

More homes are selling in Rotorua than a year ago and real estate agents are predicting growth in sales and house values this year after what has been a tight market for five years.

In February, 79 houses sold compared with 75 in the same month last year. The median house price jumped by more than $40,000 from $228,000 a year ago to $271,000.

McDowell Professionals sales manager Phil Hereford said although 2012 was up on 2011, it was a relatively tough year. He predicted 2013 would be better, based on figures so far this year.

He said more than half of the homes sold last month were between $200,000 and $400,000 and 14 of the sales were for homes between $400,000 and $600,000. There were two sales above $600,000 with a home at Lake Tarawera selling for $1.4 million and a home on the shores of Lake Rotoiti selling for $945,000.

Mr Hereford said homes which had been on the market for 12 to 18 months were starting to sell, more were selling at close to the listed price and an increased number of properties were selling fast.

"We've had properties in the $300,000 to $400,000 bracket where they've been on the market less than two weeks and they are under contract at what I would classify as a strong price, close to the listed price."

Lynmore residents Colin and Margaret Stace put their three-bedroom older style Lewis Rd home on the market last month and after a week they had two offers and a sale at the listed price of $299,000.

Mr Stace and his wife, who are moving to Australia, said he was surprised at how fast the property sold. Just over five years ago they tried to sell and had the house on the market for three to four months before taking it off the market.

Mr Stace said when they put their house on the market this time, they thought it would take at least two to three months to sell.

"It was quite a delightful surprise to see it go that quickly."

He said its location would have been a big selling point.

Harcourts Rotorua principal and manager Heilke Oppers said they'd had a busy January and a decent February as well.

"We are seeing quite an increase in buyer activity...people [buyers] are making decisions a lot quicker."