Lower prices have contributed to Mount Maunganui and Papamoa leading a big resurgence in Tauranga's housing market, with the number of sales bouncing back to the old days before the market collapsed in 2008.
With the Rugby World Cup in the bag and a government elected, sales along the coastal suburbs shot up 53 per cent last month compared with December 2010, reaching 75 properties.
Latest Real Estate Institute of New Zealand (REINZ) figures showed that the other two-thirds of Tauranga was less buoyant, with 107 sales, or 23 more sales than December 2010, and a 15 per cent increase on four years ago.
LJ Hooker Franchise owner Neville Falconer said the recovery in sale volumes was linked to vendors recognising that prices had fallen.
"It is what is normal for today," Mr Falconer said.
December's median price for the Mount and Papamoa was $32,500 less than 2007's median of $450,000, or a 7.2 per cent drop. The $315,500 median for the rest of Tauranga indicated that the market had retreated by nearly 13 per cent since 2007.
Mr Falconer said sales on the Tauranga side of the harbour had averaged 103 a month in 2011 until December, when sales reached 107, despite having only three working weeks. A contributor to the downward adjustment in values had been the declining value of sections at The Lakes affecting the value of fully developed properties, he said.
Ross Stanway, the chief executive of Realty Services, which operates Eves and Bayleys, said the increased buyer demand had not transferred into prices but the turnaround in sales was much quicker. Instead of taking an average of 60 days to sell, figure dropped to about 45 days in the past three months.
The increased demand was partly a reflection of fewer properties on the market, meaning buyers had fewer options and were moving more quickly Property market bounces back as coastal sales soar
on a property that met their needs.
Another sign of a revival in the market was the significant numbers of properties listed for auction last month.
John O'Donnell, principal of LJ Hooker at the Mount and Papamoa, said owners were starting to realise they had to meet the market. And people who had kept their money "close to home" in the past three years, were returning to buy holiday homes, particularly during the last couple of months "which tells me they are confident in their lives", Mr O'Donnell said.
Another trend was forced apartment sales, with prices plummeting at least 40 per cent. Mr O'Donnell said the Bank of Scotland was selling apartments in the $550,000 to $650,000 bracket.
However, first-home buyers were the biggest influence, with 70 per cent of sales in the Mount and Papamoa for properties less than $400,000.
"Anything over $600,000 is a difficult price range," Mr O'Donnell said.
Simon Martin, managing director of Harcourts Advantage Realty, said there was a drop-off during the Rugby World Cup and the election, followed by a notable increase in sales and inquiries during November and December, with the trend continuing this month.
He said people had come to terms with the market; were becoming desensitised to the European economic crisis; and had decided to just get on with it.
Buyers were generally spending the same amount of money but getting a better bang for their buck, Mr Martin said. "Some good properties are coming on to the market."
Snapshot of Tauranga's Residential Real Estate Market in December
- Real Estate Institute of New Zealand