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 nationwide decreased by 1.8%, from $825,000 in July 2021 to $810,000 in July 2022. Bay of Plenty's median house price was $860,000, with an annual gain of 3.6%. This gain was supported by increases in the Whakatane and Western Bay of Plenty Districts. In July, the Rotorua District's median house price was $635,000, a 0.8% decrease compared to last year.
The median nationwide price excluding Auckland was down from $740,000 in June to $720,000 in July. Month on month prices showed a decrease in growth down 4.7% across the country during July. Bay of Plenty's median house price was down 4.4% compared to June. The Rotorua District increased by $20,000 or 3.3%.
Inventory levels continue to increase. The total number of properties for sale nationwide increased by 107.81% from July 2021 to 26,358. The Bay of Plenty has increased inventory by over 170% since July 2021.
Jen Baird, REINZ CEO, noted: "We saw a significant upswing in prices since the initial COVID-19 lockdown in early 2020, reaching a peak in November 2021. While the median property price is showing an annual decrease, affordability remains an obstacle for many, which is now being driven by rising interest rates, inflation and tighter lending criteria. Real estate markets are cyclical, after a period of strong upward movement, it is slowing. However, prices tend to decrease more slowly than they increase and after a period of stability, the market tends to regain momentum and median prices start to climb. We are in the easing part of the market cycle."
Neville Falconer, REINZ Regional Director, says: "July saw an increase in contracts subject to sale and conditional contracts falling through. Vendors understand current market dynamics and are adjusting their price expectations accordingly. Pre-approvals are still a significant barrier for buyers, particularly as sickness and staff shortages further slow the application and approval process."
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 your property value!