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!

Median prices for residential property increased by 2.4%, from $820,000 in May 2021 to $840,000 in May 2022. Bay of Plenty's median house price was $905,000, correlating with nationwide prices and an annual gain of 10.7%. In May, the Rotorua District's median house price was $647,000, an 8.7% increase compared to last year.

The median nationwide price excluding Auckland was down from $755,000 in April to $730,000 in May. Month on month prices showed a decrease in growth, down 4.0% across the country during May. Bay of Plenty's median house price was up 0.6% compared to April. The Rotorua District decreased by $43,000 or 6.2%.

Inventory levels continue to increase. The total number of properties for sale nationwide increased by 77.6% from May 2021 to 26,435. The Bay of Plenty has increased inventory by over 20% since May 2021. There is more property for sale on the market, giving buyers more choice and more time to decide. The result is that there is less upward pressure on prices.

Jen Baird, REINZ CEO, noted: "With further increased interest rates to counter inflation expected, global economic uncertainty, supply chain disruption caused by the conflict in Ukraine, we may see market activity settle this winter at its new, slightly slower pace. Except for the West Coast, median prices in the regions have come off their peak."

The Government's May Budget announcement of increasing the cap on the First Home Grant was good news for first home buyers. Rotorua District new house price caps are $525,000 for both new and existing properties. However, navigating tighter lending criteria, increasing inflation, global economic uncertainty, and rising interest rates will remain a challenge for new buyers.

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!

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