Market Overview - July 2023

AUTHOR WILL JOHNSTON & PAUL MCNEIL - Branch Managers

The latest REINZ data for July 2023 shows trends of more activity from buyers along with lower than normal inventory levels across the Bay of Plenty. Average days to sell fell by 1 day to 56 days from the previous month with the 10 year average for the region at 46. Sales volume for July was up 13.7% compared to July last year, with a rise of 7.8% when compared to June 2023.

We are seeing an increase of activity from first home buyers and owner occupiers across the market with many investors seeming to be hanging back in anticipation of the upcoming election, not unusual in an election year.

This activity is evident in the auction room with more buyers attending and some fantastic results being achieved across all market segments.

Whist some Vendors are adjusting their price expectations to reflect current market conditions, others are holding fast to achieve their original expectations reflected in the average days on the market dataset. There is certainly a feeling of optimism within the industry with Salespeople reporting strong numbers of quality buyers through open homes and good levels of enquiry arising from robust marketing campaigns.

The switching of the acronyms is starting to happen; the easing of FOOP (Fear of Over-Paying) makes way for the gradual return of FOMO (Fear of Missing Out). This is particularly evident in the return of strong bidding amongst competing buyers at auction and the significant return of multi-offer situations.

These trends combined with the low level of inventory available and the increase in sales volume year on year make for a great time for sellers contemplating a move to enter the market. Spring has almost sprung and as we look even further forward to the back quarter of the year there is significant shoots of green for both sellers and buyers!