Property in the Bay of Plenty was selling at a "record-low" of 30 days. Photo / Getty Images
Property in the Bay of Plenty was selling at a "record-low" of 30 days. Photo / Getty Images
Property in the Bay of Plenty was selling at a "record low" median of 30 days, with the region's annual sales volumes during November the highest they've been since 2016.
Rotorua real estate agents say rock-bottom interest rates, a shortage of stock and fear of missing out were driving thedemand to get in quick.
One property on Thackeray Pl sold just over a week after it was placed on the market.
Real Estate Institute of New Zealand regional director Neville Falconer said the latest figures showed annual sales volumes in the Bay reached 645 last month.
Real Estate Institute of New Zealand regional director Neville Falconer. Photo / Supplied
That was 29.5 per cent - or 147 more houses - compared to November 2019 and the highest since May 2016, he said.
"Properties are selling quickly, with median days to sell at a record low of 30 days," he said.
The current Days to Sell of 30 days was much less than the 10-year average for November which is 42 days, the Real Estate Institute of New Zealand's latest report stated.
"Investors have remained active in the market as they are taking advantage of the low interest rates and hurrying to get in before the LVR restrictions change," Falconer said.
"However, there are more cash buyers in the market than the same time last year."
A total of 133 homes sold in Rotorua - up 22 per cent from 109 in November last year.
The city's median house price jumped 20.6 per cent to $567,000 in November 2020 compared to $470,000 in November 2019.
Tremains real estate agent Judy Clarke said a home on Thackeray Pl had sold in just over a week.
"It was a cash unconditional offer," she said.
Clarke said the nicely-presented, three-bedroom property had a four-way multi-offer.
"The first open home had 15 groups through and that was the last open home because we had a four-way multi-offer on the property that afternoon and it sold two days after the open home."
The home was a popular type of property, she said.
Tremains Rotorua sales manager Megan Davies said the company exceeded targets in November and sales were often below 30 days on the market.
Davies said auction campaigns were typically four weeks, which was reflected in the 30 days to sell.
"Our company average is less than that, excluding auctions. A fast sale is a cash unconditional sale of course so that can be just a matter of days to get the solicitors on to it."
First National principal and Rotorua REINZ spokeswoman Ann Crossley said her data showed a record number of sales had been achieved in the city.
"It's an absolute record compared to the absolute dip we had in April during lockdown."
First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / File
The number of days to sell had also continued to come "crashing down", she said.
Crossley said houses sold during their three peak months were going for between $450,000 and $600,000.
"We tend to see people miss out on a couple of properties and say, 'I'm not going to miss out again', so they will put in a bigger offer next time.
"It's an absolute fear of loss."
Professionals McDowell Real Estate co-owner Steve Lovegrove said he was seeing a lot of stressed buyers in the market.
"We're seeing buyers trying to get a jump on other buyers. We're seeing buyers prefer auctions because they can see what's going on.
"The biggest concern for buyers is overpaying but they don't want to miss out."
Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / File
Lovegrove said properties were typically selling at auction, which were typically about a three-week campaign.
"For the average to be 30 days that tells me that an awful lot are being sold unconditionally really quickly, which is frustrating buyers because they're having to act quickly."
It meant real estate agents were also working hard to address a number of buyers - and fast.
"Buyers who are wanting to make an offer, I'm taking them through the exact same day it's being listed.
"But we have the responsibility to our vendors to make sure we get all buyers through and they have the opportunity to put an offer forward.
"It largely comes down to having a lack of supply."
Harcourts Rotorua sales manager Colville Barbour.
Harcourts Rotorua sales manager Colville Barbour said "exceptionally strong" demand for homes leading up to Christmas and a shortage of available stock was resulting in continued pressure on prices.
"Like the market in general, we are finding property is selling faster," he said.
"The important thing is to do right by our vendors so a two- or three-week campaign is ideal in this market, to get the desired exposure.
"We expect the market conditions to continue through the New Year period. Rotorua remains a desirable place to live and invest and the cost of borrowing is low."
REINZ chief executive Bindi Norwell said November was an "incredible month" for sales volumes across the country, with just shy of 10,000 properties sold over 30 days.
"The last time we saw a similar level of sales volumes was back in March 2007 – 164 months ago – before the national recession and Global Financial Crisis started impacting New Zealand's property market."
Norwell said November saw 10 out of 16 regions recorded double-digit percentage increases in annual sales volumes.
"Part of this is likely to be attributed to people wanting to purchase property ahead of Christmas.
"[It was] partly due to the Reserve Bank announcing in early November that it would undertake a consultation in December to reintroduce LVRs earlier than planned, but also due to this underlying fear that prices might increase even further in the coming months."
