October Rotorua Property Report

The number of New Zealand properties sold in September, was up 37.1% year on year (6,112 to 8,377). This is the highest number of properties sold in a month since March 2017 and the highest number of properties sold in a September month for 14 years. New Zealand's median house price also climbed to a new record, up 11.1% annually to reach $685,000. How does this compare to properties sold in Rotorua?

Rotorua's property market continues to show strong growth. Property sales volume was up 33.3% in September and a new record median house price of $521,000 was achieved, up from $438,000 a year ago. The Bay of Plenty region median house price increased by more than $100,000, now sitting at $709,000. Tauranga is the regions most expensive city, at an average of $780,000.

What is noticeable is the reduction of time properties are sitting on the market. The current Days to Sell of 36 days in the Bay of Plenty, is less than the 10-year average for September, which is 45 days. There were 12 weeks of inventory in September 2020, which is 2 weeks less than the same time last year.

Bindi Norwell, REINZ CEO noted, "Normally one month out from an election, people start to take a wait and see approach, and sales volumes begin easing off. However, 2020 appears to continue in its trend of being an anomaly, with the number of properties sold the highest in 42 months, since March 2017, when the country was last experiencing such growth."

"Much of this activity is being driven by the extremely low rates at which people can borrow money, which is at its lowest levels since records began, consumers having additional 'cash' available due to a lack of international travel and some uplift from returning ex-pats. When you then add in high levels of confidence in the housing market, the removal of the LVRs back in March and people's fear that prices are just going to keep increasing in the future, then this explains why people are going to such lengths to secure a property now," points out Norwell.

Neville Falconer, REINZ Regional Director, summarised the movements for Bay of Plenty as follows:
"Open home attendance has increased as interest levels remain high from first-time buyers and investors looking to take advantage of the low-interest rates. Multi-offers remain common practice throughout the region, with back-up offers becoming more prevalent. Normally in the months leading up to an election we would see a drop off in numbers, however, that doesn't seem to be the case in the Bay of Plenty as demand continues to outweigh supply."

If you are looking for properties for sale in Rotorua, remember to check out our current listings. Alternatively, if you are looking for a Real Estate agent in Rotorua, then get in touch with the team!

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