Confidence through the roof

The Rotorua housing market has seen a resurge of confidence.

The Rotorua housing market is seeing a surge in confidence with the latest QV figures show property values rising once again this year.

Local agents have reported significant increases in sales, multiple offers and growing frustration from potential buyers competing for houses.

Their comments come as the average home value in Rotorua has risen slightly year-on-year to $273,754, or by .9 per cent, according to the QV August residential price index. It follows a record 120 houses sold in July, the highest number since 2007.

Sales manager for Professionals McDowell Real Estate, Phil Hereford, said they saw an increase in sales activity over the last three months.

"It's right across all price ranges from the investor end to the upper range. We have had multiple offers and really strong sales prices. It's definitely a sellers' market," Mr Hereford said. "Rotorua has had a lacklustre market for seven years, over the last four or five months a lot of activity has been generated, not only in the city but outside as well and I think that is adding to the strength of the market."

Mr Hereford said there were a number of factors that influenced the demand. "I don't think it's any key aspect at all but just a number of contributing factors and a belief in the whole of the Rotorua marketplace. Confidence is out there."

First National Rotorua principal Ann Crossley agreed and said the QV figures weren't yet showing the true demand in the market. She said there was strong competition in homes priced up to $300,000.

"The QV don't get their stats until a property has settled so the change in market has been really dramatic and has happened quickly. There has been a huge increase of frustration in buyers, they're getting ratty with us because they're missing out on properties. There's not enough properties and they're competing to buy - so frustration levels are quite high."

Ms Crossley said they were now taking steps to slow down the sale process to ensure their vendor received the best price - a welcome change after coping for years with a stagnant property market.

"April 2008, that's when the tap got turned off. The day the Global Financial Crisis hit, the phones stopped ringing and it's switched back on almost as fast." Bayleys Rotorua branch manager Beth Millard said the change has been a long time coming.

"It's a sigh of relief, there is confidence in the market and it's causing traction - we're experiencing multiple offers," Ms Millard said.

"There is no comparison to last year, the market is completely different.

"Whether it's perception or reality, there are more out-of-town buyers in our market," she said.

"If they've come from the Auckland market they are used to transacting quicker, they're certainly a more savvy buyer and they're not waiting to make an offer," she said.

"I think it's not a celebration for us, it's a celebration for the people who employ us. They can confidently put their house on the market and know they will move in a timely manner. It wasn't like that a year ago."

Hot property

* QV figures for August show the median house price at $273,754
* The figure is a .09 per cent increase from August last year
* Local real estate companies report more interest in open homes
* Multiple offers on properties, frustration from would-be buyers who miss out
* Reports of strong competition for homes priced up to $300,000