What are the property trends we can expect to see in 2018 in Rotorua?
At the end of 2017 we spoke about how excited we were for the year ahead for our region. There are so many things to look forward to this year. But what about our property market? Will values begin to plateau across our region like they have in Auckland? Or will we continue to see the growth we have over recent years?
Typically, regional markets are 12-months behind Auckland's residential property trends. Sale results from regional New Zealand have taken a different route this cycle. Because we have seen an easing of the loan to value restrictions (LVR) by the Reserve Bank of New Zealand's (RBNZ), it's made it easier to finance regional property purchases. A perfect scenario for our local market.
"The difference in performance of regional markets compared with that of Auckland is dependent on a number of factors. While value gains are already tapering in some regions it appears that others will see momentum for a number of months yet," says Bayleys Research manager Ian Little.
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"The case in point is that, at present, within all 15 of the regions outside of Auckland the amount of stock available to market is sitting well below their long-term average. When combined with recent levels of sales activity, the regional weeks to sell the inventory, is also lower than normal" says Little.
The latest September Quarter 2017 statistics from realestate.co.nz are as follows for the Bay of Plenty region:
Listings Numbers – Current - 1,416 vs Historical Average 3,676
Weeks to sell – Current 12 vs Historical Average 43
This tells us that there is less supply than there is demand and things are still selling quickly. With a quick moving market, plenty of demand and prices that are still seen as affordable, our market should remain buoyant.
Mr Little says on this, "purchaser demand remains strong enough to keep momentum going through 2018 in regional New Zealand".
To summarise, in the short term, we will be likely to see an extension in the time it takes properties to sell. But ultimately we don't foresee any major and abrupt shifts in our local market. We should continue to see a positive story playing out for property owners in Rotorua. When you combine this with major international events, local commercial projects and a continuing shift to regional New Zealand, it's a great time to live where we do.
These economics, combined with the usual February and March uplift in activity, mean it's a great time to sell. If you want your property to stand out amongst the pack, talk to our expert real estate team at Bayleys Rotorua about how we can help. Call today on 07 349 3210.