Residential Market Report May 2023
NZSOTHEBYSREALTY.COM
Nothing compares to what’s next.
Market Overview - May 2023
natural needs of the population. The market currently reflects a stand-off between buyers who are adopting a wait-and-see approach and sellers who believe that the market has bottomed out. Consequently, sales volumes have not seen a significant increase. However, there are signs of positivity emerging. More buyers are beginning to show a sense of urgency due to the general commentary from the central bank, indicating that interest rates have peaked and unemployment remains low. With the decline in property values to their current level, homes have become more affordable for first-time homebuyers, prompting them to take action. This shift in buyer behaviour is a promising development for the market.
It’s important to note that the pending election may have a significant impact on the direction and intensity of the market. There is a noticeable divide between the main party policies emerging in relation to real estate. The outcome of the election could potentially influence market dynamics and investor sentiment.
For those looking to buy, the current market conditions present a unique opportunity. In the opinion of this writer, the current buying conditions are particularly welcoming and conducive to taking action. The combination of stable interest rates, low unemployment, and more affordable prices make it an opportune time for buyers to enter the market.
AUTHOR HAYDEN DUNCAN - Managing Partner
The Bay of Plenty real estate market in New Zealand, as indicated by the latest REINZ data released for May 2023, continues to show certain challenges. While the average days to sell remained unchanged at 56, there was a decrease in the median house price by 3.7% from April, bringing it down by 13.2% compared to the previous year, with the current median price at $790,000 for the region.
The number of sales in the Bay of Plenty region remains stubbornly low, with only 340 sales recorded. This volume is not sustainable in the long term to meet the
While challenges persist, there are reasons to remain optimistic about the Bay of Plenty real estate market. The sense of urgency among buyers, along with favorable economic indicators, may contribute to a gradual increase in sales volume and market activity. As always, in markets such as this, it is critical to engage a knowledgeable salesperson supported by a well-resourced and reputable agency to enable you to navigate the best outcome possible when selling.
- Hayden Duncan 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 and Coromandel as Managing Partner of BOP NZSIR.REINZ Market Summary | May 2023
Suburbs
Western Bay of Plenty District
Western Bay of Plenty District
*All Statistics from Real Estate Institute of New Zealand Median Sale Price change since last year -13.2% Median Sale Price Overall Sales Bay Of Plenty $790,000 Total Number of Sales Bay Of Plenty 340 Median Days to Sell Bay Of Plenty 56 *All Statistics from Real Estate Institute of New Zealand Tauranga City Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Tauranga City $861,000 -13.5% 183 54
Bellevue $640,000 -22.4% 3 166 Bethlehem $980,000 -24.6% 10 43 Brookfield $792,500 -6.7% 4 43 Gate Pa $660,000 +3% 6 36 Greerton $627,000 -13 5% 6 28 Judea $861,000 -9.8% 5 30 Matua $795,000 -50% 7 126 Maungatapu $722,500 -14% 4 78.5 Mount Maunganui $940,000 -35.2% 25 62 Ohauiti $940,000 +1.1% 7 50 Otumoetai $1,047,500 -7.3% 9 80 Papamoa Beach $870,000 -15.5% 58 57 Pyes Pa $1,065,000 -7.6% 19 50 Tauranga Central $635,000 -36.3% 1 42 Tauranga South $657,500 -28.3% 4 44 Welcome Bay $850,000 -6.1% 14 65
REINZ Market Summary MAY 2023
Tauranga Suburbs
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Western Bay of Plenty $820,000 -24.8% 45 76 Katikati $790,000 0% 10 93 Omokoroa $1,047,500 -7.3% 9 80 Te Puke $737,500 -6.6% 8 53
Each office is independently owned and operated. NZSIR BOP Limited (licensed under the REAA 2008) Median Sale Price change since last year -13.2% Median Sale Price Overall Sales Bay Of Plenty $790,000 Total Number of Sales Bay Of Plenty 340 Median Days to Sell Bay Of Plenty 56 *All Statistics from Real Estate Institute of New Zealand Tauranga
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Tauranga City $861,000 -13.5% 183 54 Tauranga
Bellevue $640,000 -22.4% 3 166 Bethlehem $980,000 -24.6% 10 43 Brookfield $792,500 -6.7% 4 43 Gate Pa $660,000 +3% 6 36 Greerton $627,000 -13.5% 6 28 Judea $861,000 -9.8% 5 30 Matua $795,000 -50% 7 126 Maungatapu $722,500 -14% 4 78.5 Mount Maunganui $940,000 -35.2% 25 62 Ohauiti $940,000 +1.1% 7 50 Otumoetai $1,047,500 -7.3% 9 80 Papamoa Beach $870,000 -15.5% 58 57 Pyes Pa $1,065,000 -7.6% 19 50 Tauranga Central $635,000 -36.3% 1 42 Tauranga South $657,500 -28.3% 4 44 Welcome Bay $850,000 -6.1% 14 65
City
Location Median Sale Price % Sale Price Diff from 1yr Prior Number of Sales Median Days to Sell Western Bay of Plenty $820,000 -24.8% 45 76 Katikati $790,000 0% 10 93 Omokoroa $1,047,500 -7.3% 9 80 Te Puke $737,500 -6.6% 8 53
Each office is independently owned and operated. NZSIR BOP Limited (licensed under the REAA 2008)
REINZ Market Summary | May 2023
NZSIR Property Highlights NEW TO THE MARKET
17 Sarona Park Drive
SIGNIFICANT SALES
Brought to the market by Clark Mazey
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
40 Ainsworth Road, Te Puna Sold by Gregers Andersen
860B Pyes Pa Road Sold by Team Pryor
2 Longwood Lane, Otumoetai
Brought to the market by Sally Francis
20 Tinopai Drive, Omokoroa
Brought to the market by Team Pryor