Welcome to Key Real Estate's monthly Property Report. We'll look at properties for sale in Rotorua, the Bay of Plenty and across the country. Check out the house price highlights below!
Median prices for residential property increased by 7.9%, from $825,000 in March 2021 to $890,000 in March 2022. Bay of Plenty's median house price was $937,000, correlating with nationwide prices and an annual gain of 12.6%. In March, the Rotorua District's median house price was $770,000, an 18.5% increase compared to last year.
The median nationwide price excluding Auckland was down from $785,000 in February to $775,000 in March. Month on month prices showed a slight increase in growth, up 0.6% across the country during March. Bay of Plenty's median house price was down 3.3% compared to February. The Rotorua District increased $50,000 or 6.9%.
Inventory levels continue to increase. The total number of properties available for sale nationwide increased by 32% from March 2021 to 25,659. The Bay of Plenty had increases in inventory levels of over 50% since March 2021. More stock available allows more choice for buyers, alleviating competition and upward pressure on prices. In some areas the number of new listings is decreasing, suggesting vendors are being cautious and delaying selling due to market uncertainty.
Jen Baird, REINZ CEO, noted: "Over the past three months, we have seen a shift and the market is now settling into this phase of the cycle. The last two years have benefited from an exceptional COVID-19 boost. Following this period of significant activity and growth, prices are easing and the market is returning to a more settled pace. The rate of growth is slowing, sales activity is down and the median days to sell are up. The impact of tighter lending criteria, LVR's, and increasing interest rates coupled with inflation continue to reduce the pool of willing and able buyers to pay market prices".
Neville Falconer, REINZ Regional Director, further commented on the Bay of Plenty: "Like many regions around the country, supply of property in the Bay of Plenty now outweighs demand. Stock levels increased by 73.8% year on year, and listings increased by 11.5%. With market headwinds such as changes to the CCCFA, rising interest rates, the re-introduction of LVRs, and COVID-19 adversely impacting buyer demand, open homes have seen fewer attendees. Auction rooms have been emptier than they were this time last year. Sales activity also saw a decline - down 25.7% year on year".
We hope you enjoyed this month's Property Report. With so much movement in house prices,contact Key Real Estate, your Rotorua property specialists, to find out your property value!