KEY Real Estate Property Market Report

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!

New Zealand's median house price continued to show strong annual growth. National prices for residential property increased by 25.2%, from $659,500 in July 2020 to a record $826,000 in July 2021. Bay of Plenty's median house price was $830,000, representing strong growth on an annualised basis, with property values increasing 25.8%. The Rotorua District's median house price was $640,000 in July, up a considerable 30.6% compared to last year.

Monthly prices across the country continued to show relatively flat gains month on month, up 1.3% since June. Bay of Plenty's median house price of $830,000 was the same as the revised average house price for the region in June, representing 0.0% growth. The Rotorua District rose 8.5% compared to June, reversing last months slight 1.3% drop.

Last month we highlighted the persisting lack of inventory available. The situation worsened in July, with only 12,684 properties available for sale, a record low for New Zealand. This was 34.8% (or 6,757) less than 12 months ago and tells why we continue to see pressure on house prices throughout New Zealand.

Jen Baird, REINZ CEO, noted: "House prices have continued to rise across the country as every region saw a year-on-year increase from July 2020. The last two months have shown early indications that the rate of growth is starting to ease, however, it is too early to say whether this is the usual winter easing we would normally see or if the Government's intervention in the market and signalled changes to the OCR are starting to take effect."
"The strength of the market has again been reflected in the REINZ House Price Index which reached a new high on the index nationally. Every region across New Zealand reached a record level in July, indicating the underlying value of property is holding strong and will likely do so for a few months yet."

Neville Falconer, REINZ Regional Director, commented on the Bay of Plenty: "More properties are now being sold for $1 million or more, making up 31.4% of all sales in July, up from 14.5% of all sales in July 2020. Inventory remains low with a total of 676 properties available to prospective purchasers, placing upward pressure on prices as demand continues to outweigh supply. Median days to sell is the same as last month (31) but has decreased from 40 days at the same time last year – this is the lowest median number of days to sell for a July month since records began. The REINZ House Price Index for the Bay of Plenty region increased 34.0% annually to a new record level of 4,046. Listings are expected to increase over the coming months as we approach spring and the warmer months."

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 see how much your property has increased in value!

Contact Us

Download File