Local housing market in a good place, say agents

FILE

November house prices in Rotorua were down from October but up from the same time last year, figures show.

The median Rotorua house sale was $265,000 in November - a $10,000 drop from October but $5000 increase from November 2013, according to the Real Estate Institute of New Zealand's (REINZ) latest figures.

The number of house sales also dropped off from October but remained higher than in November 2013.

Ian McDowell, managing director of McDowell Professionals, said $265,000 was quite good as prices generally fell around $250,000 but could be as low as $230,000.

The median price decrease from October would have been due to more sales at the lower end of the market, he said.

"The market has been fairly quiet all year but there was a definite pick up after elections," he said.

"Confidence in the market is improving. More people are coming to open homes and more people from out of town are showing interest in the Rotorua market."

Aucklanders made up a large portion of interested out-of-towners but there was also interest from the wider Waikato/Bay of Plenty region and as far away as Wellington, he said.

Harcourts Rotorua agent Hielke Oppers said he had noticed an increase in activity from the previous year.

"There's definitely more sales than there was 12 months ago," he said. "[Loan-to-value ratios] don't scare people too much anymore, people are using KiwiSaver more and parents are helping their kids buy their first homes."

More urgency in the market was also evident, he said.

REINZ chief executive Helen O'Sullivan said the November data showed buoyancy returning to parts of the market.

"Commentary from around the regions suggests the 'top end' of a number of regional markets are performing well," she said.