Welcome to the monthly Property Report by Key Real Estate.
This report will explore properties available for sale in Rotorua, the Bay of Plenty, and across the entire country.
Look at the notable house price trends below:
Nationwide Median Prices: The median prices for residential properties nationwide have experienced a 4.1% decrease, dropping from $800,000 in August 2022 to $767,000 in August 2023.
Bay of Plenty: The median house price in the Bay of Plenty stood at $770,000, reflecting a significant annual decrease of 14%.
Rotorua District: In August, the median house price in the Rotorua District was $595,000, marking an 11.9% decrease compared to the previous year.
Excluding Auckland: When excluding Auckland, the nationwide median price dipped by 1.5% from July to reach $670,000 in August. Additionally, there was a minor 0.3% decline in prices across the entire country during August.
Bay of Plenty (Month-on-Month): The Bay of Plenty saw a 3.7% reduction in its median house price compared to July.
Rotorua District (Month-on-Month): In August, the Rotorua District experienced a decrease of $55,000 or 8.5% in its median house price.
On the inventory front: Inventory Decrease: The total number of properties available for sale nationwide decreased by 10.6% from August 2022 to reach 22,750 in the current period.
Bay of Plenty Inventory: The Bay of Plenty saw a decrease in inventory by one week compared to August 2022.
Jen Baird, CEO of REINZ, provided insights into the market dynamics, mentioning that local agents have observed a decline in new listings. However, demand for entry-level properties remains strong, and properties are selling faster. Higher interest rates and the ongoing pressures of living costs are affecting the market, especially with an impending election. There's a general sense that the market may have hit its lowest point in terms of both prices and sales volumes, but everyone is waiting to see how long it will take for growth to return.
First-time buyers are actively engaged in the Tauranga market, while owner-occupiers are the most active group in Rotorua. More vendors are now willing to adjust their price expectations to align with the current market conditions. However, there are still some who are holding out for more favorable conditions throughout the region.
We hope you found this month's Property Report informative. With significant fluctuations in house prices, don't hesitate to reach out to Key Real Estate, your Rotorua property specialist, to determine the value of your property.