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 4.2%, from $816,000 in June 2021 to $850,000 in June 2022. Bay of Plenty's median house price was $900,000, correlating with nationwide prices and an annual gain of 8.4%. In June, the Rotorua District's median house price was $615,000, a 4.2% increase compared to last year.

The median nationwide price excluding Auckland was up from $733,000 in May to $741,000 in June. Month on month prices showed an increase in growth, up 1.2% across the country during June. Bay of Plenty's median house price was up 1.1% compared to May. The Rotorua District decreased by $34,000 or 5.2%.

Inventory levels continue to increase. The total number of properties for sale nationwide increased by 89.5% from June 2021 to 26,271. The Bay of Plenty has increased inventory by over 158.91% since June 2021. Higher numbers of properties for sale mean more opportunities and choices for buyers. Buyers are taking more time to decide and including more due diligence when making offers resulting in a lengthier sale process.

Jen Baird, REINZ CEO, noted: "Housing affordability remains an issue for many buyers on the market. Paired with tighter lending restrictions, higher interest rates, and concerns over inflation, we are seeing hesitancy amongst buyers. As the high growth through 2021 dissipates, downward pressure on prices may improve affordability."

Buyers are still fearful of overpaying and hesitant to make decisions, resulting in properties staying longer on the market and declining sales numbers. We have yet to see the impact of the changes to the Credit Contracts and Consumer Finance Act alleviating pressure on borrowers.

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!