New Zealand Sotheby’s International Realty Residential Market Report JANUARY 2023
Market Overview - January 2023
The positives are the increase in first home buyer confidence and activity. Many that have sat on the side-lines watching while values were running away from them over the last few years are now out looking with the dream of ownership a reality that they can achieve. This is an important segment of the market as it allows the buying cycle to move. This activity is enabling the first home buyers from a couple of years ago to look at upgrading to larger or better located homes. Those moving up in the housing market are enjoying a smaller difference than a year ago so the next step for some is more achievable now and we are seeing some taking advantage of that.
The Bay of Plenty real estate market in New Zealand is following the national trends, recording a decrease in sales volume and a significant drop in median price in January 2023 compared to the previous year.
The Bay of Plenty region recorded 145 sales in January 2023, down from 230 in 2022 and the lowest number since records started except for the period over the COVID 19 lockdown. This is a clear indication of how the current state of the economy is affecting the real estate market in the region.
The median price for the Bay of Plenty is now at $765,000, a decline of 18.8% when compared to the same time last year. This price drop has been influenced by the ongoing increase in interest rates and high inflation pushing up the cost of living, which have affected affordability.
As a result, potential buyers now have more choice in the market, which has the impact of sellers having less buyers to work with, which has led to a more competitive and challenging selling environment.
The current days to sell in the region stand at 63, which is significantly higher than the ten-year average for January, which is 52. This indicates that properties are spending more time on the market than in previous years. Additionally, there are currently 33 weeks of inventory compared to just 12 weeks in January 2022, which is another sign that the market has slowed down.
AUTHOR HAYDEN DUNCAN - Managing Partner - Hayden
The declining values and slower days to sell do reflect a more challenging market without doubt, however, it is not a market in freefall, but purely a market correction following the fastest pace of property value inflation on record. A result of economic stimulation and cheap money to help navigate and lessen the impact of the pandemic on the economy. It is the view of many market commentators that it will be some time before we see values at this level again. This is simply the hangover after the cheap money COVID party. The reality for most sellers is that the values they are able to achieve today provide for exceptional gains to be enjoyed by comparison to what they paid when they purchased, and in many cases they are buying passing on the decline in value.
To navigate this challenging market, it is more important than ever to work with an agent who can demonstrate skill in promotion, negotiation, and sales strategy. An experienced agent can assist in developing an effective marketing strategy, identify potential buyers, and negotiate the best price for their clients. In this competitive market for sellers, it is essential to work with an agent who has extensive local knowledge and can offer valuable insights into the current market trends and fluctuations. Talk to your Sotheby’s agent today about how they can help you navigate the sale of your home to best effect.
Duncan
“To navigate this challenging market, it is more important than ever to work with an agent who can demonstrate skill in promotion, negotiation, and sales strategy.”About the author: Hayden Duncan is a real estate veteran with over 20 years experience. His career has included being the CEO of NZs largest real estate group, Head auctioneer for NZs largest full service real estate company and after setting up a real estate company in Canada he is now based in Tauranga and works within the market here assisting agents to deliver quality results throughout the Bay of Plenty as Managing Partner of BOP NZSIR.
REINZ Market Summary JAN 2023
REINZ Market Summary | January 2023
Western Bay of Plenty District
Residential Sales Stats Homes over $1m
Median Sale Price change since last year -24.5% Median Sale Price Tauranga City $800,000 Total Number of Sales Tauranga City 83 Median Days to Sell Tauranga City 63 Tauranga City Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Bellevue $756,500 -24% 2 29 Bethlehem $1,100,000 -8.3% 5 49 Brookfield $585,000 -30% 1 283 Gate Pa $650,000 -7.8% 4 67 Greerton $692,500 +2.6% 2 67 Judea - -100% 0Matua - -100% 0Mount Maunganui $750,000 -38.5% 13 46 Ohauiti $1,038,000 -11.3% 4 94 Otumoetai $700,000 -26.1% 11 64 Papamoa Beach $920,000 -18.2% 20 63 Pyes Pa $1,030,000 -17.6% 7 79 Tauranga Central $914,500 +15% 2 99.5 Tauranga South $1,380,000 +45.2% 3 162 Welcome Bay $800,000 -11.1% 6 57
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Western Bay of Plenty $950,000 -4.2% 18 79 Katikati $740,000 -37% 6 53 Omokoroa $1,250,000 +2.9% 4 21 Te Puke $845,000 +9.9% 18 79
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Bay of Plenty $1,250,000 -1.9% 49 83 Coromandel-Thames $1,850,000 +39.6% 13 39
*All Statistics from Real Estate Institute of New Zealand Median Sale Price change since last year -24.5% Median Sale Price Tauranga City $800,000 Total Number of Sales Tauranga City 83 Median Days to Sell Tauranga City 63 Tauranga City Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Bellevue $756,500 -24% 2 29 Bethlehem $1,100,000 -8.3% 5 49 Brookfield $585,000 -30% 1 283 Gate Pa $650,000 -7.8% 67 Greerton $692,500 +2.6% 67 Judea -Matua - -100% 0Mount Maunganui $750,000 -38.5% 13 Ohauiti $1,038,000 -11.3% 4 Otumoetai $700,000 -26.1% 11 64 Papamoa Beach $920,000 -18.2% 20 63 Pyes Pa $1,030,000 -17.6% 7 79 Tauranga Central $914,500 +15% 99.5 Tauranga South $1,380,000 +45.2% 162 Welcome Bay $800,000 -11.1% 6 57 Western
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Western Bay of Plenty $950,000 -4.2% 18 Katikati $740,000 -37% 6 53 Omokoroa $1,250,000 +2.9% 4 21 Te Puke $845,000 +9.9% 18 79
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Bay of Plenty $1,250,000 -1.9% 49 83
Median Sale Price change since last year -14% Median Sale Price Bay Of Plenty $768,000 Total Number of Sales Bay Of Plenty 161 Median Days to Sell Bay Of Plenty 63
Bay of Plenty District
Residential Sales Stats Homes over $1m
REINZ Market Summary | January 2023
Highlights NEW TO THE MARKET
NZSIR Property
15 Athelstan Way, Bethlehem
Brought to the market by Richard & Susie Laery
1090 No 3 Road, Te Puke
SIGNIFICANT SALES
Brought to the market by Clark Mazey
123 Pumpkin Hill Road, Tairua Sold for $2,500,000 NZD
Real estate sold by real experts Each office is independently owned and operated. NZSIR BOP Limited (licensed under the REAA 2008) MREINZ. 07 578 0003 | nzsothebysrealty.com
423B Youngson Road, Whakamarama Sold for $1,670,000 NZD