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 decreased by 12.9%, from $890,000 in March 2022 to $775,000 in March 2023. Bay of Plenty's median house price was $820,000, correlating with nationwide prices and an annual decrease of 11.8%. In March, the Rotorua District's median house price was $600,000, a 21.6% decrease compared to last year.

The median nationwide price excluding Auckland, was up from $692,000 in February to $695,000 in March. Month-on-month prices showed a slight increase in growth, up 1.3% across the country during March nationwide. Bay of Plenty's median house price was down 11.8% compared to February. The Rotorua District remained the same as February 2023 at $600,000.

Inventory levels continue to increase. The total number of properties available for sale nationwide increased by 14.1% from March 2022 to 29,284. The Bay of Plenty has increased inventory by almost 50% since March 2022. 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: "While we have seen activity pick up in March, this year's summer season has been muted. Prices have eased as we can see, and properties are taking longer to sell. Buyers are taking their time, they are negotiating, and some are waiting to see if prices ease further. There are clear signs that we are in the lower phase of the cycle, but with nearly 6,000 properties sold, vendors who are motivated to sell are meeting the market with more realistic expectations on time frame and price. Those who need to sell are still selling." 

Neville Falconer, REINZ Regional Director, further commented on the Bay of Plenty: "Buyers are not acting with urgency and vendors feel like they are losing money, however, local salespeople say that unless they bought the property during the market's peak, value loss is on paper only and vendors must realise that the market is now in its correction phase.  The upcoming election, cost of living, and inflation is seeing most people sit tight unless they need to move. Vendors are needing to prepare themselves for an extended selling period." 

We hope you enjoyed this month's Property Report. With so much movement in house prices, contact Key Real Estate, your Rotorua property specialist, to find your property value!