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The data, taken at the end of January, shows property values across the country are up by 0.9 per cent compared to three months ago.
OneRoof’s latest House Price Report showed property values were up quarter-on-quarter in 90 per cent of suburbs nationwide, with the biggest quarterly lifts in Arrowtown, Mataura and Whitford.
Of the 793 suburbs with 20-plus settled sales in the last 12 months, more than 40 per cent saw year-on-year value lifts, reflecting the turnaround in the market.
In Tauranga, this means the city’s average residential property value has risen to $1.09 million.
Local suburbs with more than 20 settled sales in the year ending January 31 included Mount Maunganui, where property values increased by 3.7 per cent in the last three months to $1.46m.
Papamoa Beach saw the second-highest three-month increase in suburb property value, a difference of 3.5 per cent.
Ray White Tauranga and Bayfair director Rodney Fong said the market was “positive”.
“We are seeing increasing buyer activity with numbers improving generally at open homes and prices stabilising.”
Fong said the most active markets are first-home buyers and owner occupiers upsizing or downsizing.
“We have seen an influx of investors selling rental properties in the past few months. The investor purchasing remains very quiet.”
Fong said his advice for sellers was to take their time.
“Have the presentation of the property as good as it can be. Engaging a real estate agent early in the planning process can help with working out what is a good use of time and money when preparing the home for sale.”
For first-home buyers, Fong’s advice was: “Be realistic with expectations on the house attributes. Often a first home won’t be their last home.”
Ray White Tauranga and Bayfair director Rodney Fong.
Tremains central region general manager Stuart Christensen said there was more property coming on to the market.
“More people have decided to make a move. Westpac dropped their interest rates on Friday. All those are encouraging signs,” Christensen said.
“We are seeing an increasing number of people at our open homes. So there’s appetite to come out and a good number of first-home buyers are out there.”
Christensen said first-home buyers did have a window to make their decisions, however ,as investors were gradually coming back into the market as well.
“Overall there’s a lot more positivity. It’s a new year. People are out looking for a move whether they are upsizing, downsizing or entering the market for the first time.”
Tremains central region general manager Stuart Christensen.
The news comes after New Zealand’s average property value grew just 0.9 per cent in the three months to the end of November to $973,000, as buyers retreated from the market after a busy November and October.
Valocity global CEO of real estate Helen O’Sullivan said sales volumes in December were lower than had been anticipated, given the lift in October and November, although they were up year-on-year.
Valocity data showed mortgages registered to first-home buyers in the last quarter of the year dipped to 44 per cent from the five-year high of 45 per cent the previous quarter. Mortgages registered to investors increased slightly from 22.4 per cent to 23.6 per cent over the same period.
O’Sullivan said the Reserve Bank’s announcement around debt-to-income ratios was unlikely to have an impact on the current market.
“The proposed settings are not expected to make a significant difference to prices or activity levels in the current high-interest rate environment,” she said.
“When interest rates are lower, [debt-to-income ratios] will limit the level of debt borrowers can assume despite being able to service the debt. The intended effect of this will be to keep a lid on the upwards momentum that lower interest rates might otherwise drive.”
Maryana Garcia is a regional reporter writing for the Rotorua Daily Post and the Bay of Plenty Times. She covers local issues, health and crime.
