Property experts predict what the market might look like in 2022. Photo / Getty Images
Property experts predict what the market might look like in 2022. Photo / Getty Images
Rotorua's property market has again outperformed expectations despite disruptions of the Covid-19 pandemic, real estate agents say.
But official cash rate increases, government legislation to curb investor appetites and tightening credit conditions may cause some "headwinds" heading into the 2022 market.
The latest Real Estate Institute of New Zealand datashowed Rotorua had climbed $113,000 - or 19.9 per cent - in a year to a new median house price of $680,000.
REINZ chief executive Jen Baird said Rotorua had seen an annual increase in median prices each of the past 12 months.
Baird said the Bay of Plenty was an attractive alternative to New Zealand's big cities and that desirability underpinned the strength of residential property prices.
"As New Zealand moves to the traffic light system and people can get around more, it's expected this trend will continue."
REINZ chief executive Jen Baird. Photo / Supplied
Prices in the region have continued to climb in the past year and for the first time in a while inventory levels had jumped by 10.6 per cent annually and listings increased 1.4 per cent heralding good news for buyers, she said.
"Looking forward to 2022, while headwinds are gathering in terms of OCR increases, government legislation to curb investor appetites and tightening credit conditions, strength remains in the market. So, while price growth may stabilise, demand remains, lending life to the market."
REINZ regional director Neville Falconer said the market had slowed ahead of the standard Christmas easing with the usual mid-November spike in activity being more subdued.
Having more properties on the market had seen median days to sell increase by three days from 30 in November 2020 to 33 in November in 2021, he said.
"Investors were not as active in the market in November, and this was particularly noticeable when Auckland and Waikato were in alert level 3 restrictions.
"First-home buyers were also less prevalent with many turned down for preapproval."
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson said Rotorua's property market had "outperformed what we thought it would".
"We have seen a market have very strong auction results and new record sales."
Managing director of the Realty Group Ltd, which operates Eves and Bayleys, Simon Anderson. Photo / NZME
Anderson said the fear of missing out had driven huge growth in property values across the region.
He said the number of listings had increased giving buyers more options.
The sense of urgency to act was easing but there was still a strong market for buyers, he said.
"We are still seeing people expecting high sale prices for their properties but buyers are saying that's enough, which means owners may have to adjust their level of value.
"But it's not a panic situation it's just a subtle market change."
Anderson expected a few casual lookers over the Christmas break before the market picked up at the end of January.
"Activity will be strong in February."
Professionals McDowell Real Estate co-owner Steve Lovegrove. Photo / Andrew Warner
Professionals McDowell Real Estate co-owner Steve Lovegrove said 2021 had been a surprisingly good year.
Early this year he expected an influx of listings with fewer buyers and did not know what impact the opening of the border would have.
"Going forward, I think the market will be in for some kind of change. The cost of living will be the primary driver of that."
First National principal and Rotorua REINZ spokeswoman Ann Crossley. Photo / NZME
First National principal and Rotorua REINZ spokeswoman Ann Crossley said 2021 had "rattled" along like last year.
But she said the market came to a grinding halt a month earlier than expected at the end of November.
"Despite a big part of the population being locked down the year was okay."
Traditionally after any great surge in price the Rotorua market consolidates and prices find a new level to readjust to, she said.
"But anyone who is waiting for prices to drop in the new year are in for a disappointment."
