October Property Report

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Residential Market Report October 2023

Market Overview - October 2023 2.

Median Sales Value: A 3.1% Increase

The median sales value for properties in the Bay of Plenty has experienced a positive uptick, climbing by 3.1% to reach $825,000. This increase, when compared to the figures from September, showcases growing confidence and value in the region’s real estate. This increase has been predicted and is expected to continue according to the majority of expert commentators on a steady but upward value trajectory into 2024.

3.

Sales Volumes: Staying Low with a Shift in Inventory

While sales volumes have remained relatively low, recording 327 sales for the entire region in September, a noticeable shift is underway. The primary factor contributing to low sales has been the limited inventory available for purchase. However, a surge in listings, both currently hitting the market and commitments for the next three months, is anticipated to inject vitality into the market giving buyers more choice. History tells us that with properties coming onto the market we also see a lot of the sellers re-entering the market as buyers adding to the buyer activity so it is unlikely we will see a shortage of buyers despite the increase in inventory.

4.

AUTHOR HAYDEN DUNCAN - Managing Partner

The Bay of Plenty real estate market has undergone a notable transformation in the month of October 2023, signaling a positive shift from the recent downward cycle.

Key indicators point to a market that is not only stabilizing but gaining momentum. In this comprehensive report, we will delve into the statistics provided by REINZ to understand the dynamics shaping the Bay of Plenty real estate landscape.

Market Indicators: 1.

Days to Sell: A Rapid Decline

The days to sell in October have demonstrated a remarkable reduction, standing at only 1 day longer than the ten-year average of 41 days. This represents a significant improvement, with a noteworthy 15 days shorter time to sell than in the previous month of September. The accelerated pace of transactions indicates a more dynamic and responsive market with buyers taking action and astute sellers accepting current market value to allow them to move on with their plans.

Buyer Behavior: Adapting to the New Normal

Buyers in the Bay of Plenty have adjusted to the new normal regarding interest rates. Recent data showing inflation has peaked and is moving towards the reserve banks targeted range more quickly than had been anticipated has sparked activity in the market with confidence returning to buyers that have more certainty regarding living costs. There is a palpable increase in open home visitors, higher auction clearance rates, and the re-emergence of multi-offer scenarios. This shift indicates a renewed confidence among buyers and an increased willingness to engage in the market.

Market Outlook: The consensus among industry experts is optimistic, signalling that the Bay of Plenty real estate market is on an upward trajectory. Astute buyers, spanning various price categories, are witnessing heightened interest, and sellers can now look forward to executing their plans within a more reasonable timeframe.

Strategic Considerations for Sellers: In this evolving market, sellers are advised to carefully select their real estate agents. Choosing an agent with a deep understanding of the marketplace, a keen awareness of the target audience, and a proven strategy is pivotal for achieving

- 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 MarketSummary Summary | OctoberOCTOBER 2023 2023 REINZ Market REINZ Market Summary | October 2023 41 $825,000

-1.4%

327

Median Sale Price Overall $825,000 Sales Bay Of Plenty

Median Sale Price change since last year -1.4%

Total Number of Sales Bay Of Plenty 327

Median Sale Price change since last year

Total Number of Sales Bay Of Plenty

Median Sale Price Overall Sales Bay Of Plenty

41

Median Days to Sell Bay Of Plenty Median Days to Sell Bay Of Plenty

Tauranga City

% Sale Price Diff Tauranga City from 1yr Prior

Location

Median Sale Price

Location

Tauranga City Tauranga City

Number of Sales

Median Sale Price

$930,000

% Sale Price Diff from 1yr Prior +3.9%

Number of Sales

Median Days to Sell 41

$930,000

+3.9%

180

41

Tauranga Suburbs

180

Tauranga Suburbs +57%

Bellevue

$1,070,000

Bellevue

Median Days to Sell

$1,070,000

+57%

36 36

Bethlehem

$1,160,000

Brookfield

$753,000

Gate Pa

$690,000

$690,000

+2.2%

8

Greerton Greerton

$650,000 $650,000

-16.1% -16.1%

1 1

94 94

Judea Judea

$750,000 $750,000

+0.3% +0.3%

7 7

45 45

Matua Matua

$1,331,675 $1,331,675

+66.5% +66.5%

4 4

197 197

Mount Maunganui Mount Maunganui

$995,000 $995,000

-18.6% -18.6%

17 17

46 46

Ohauiti Ohauiti

$985,000 $985,000

-16.2% -16.2%

6 6

36 36

$890,000

-4.3%

15

43

$980,000

-0.5%

45

53

$1,040,000

-5.5%

12

46

$1,077,000

+26.9%

3

$795,000

-2.5%

4

Bethlehem

$1,160,000

Brookfield

$753,000

Gate Pa

Otumoetai

Otumoetai

$890,000

Papamoa Beach

Papamoa Beach

$980,000

Pyes Pa

Pyes Pa

$1,040,000

Tauranga Central

Tauranga Central

$1,077,000

Tauranga South

$795,000

Tauranga South Welcome Bay

Welcome Bay Location

+11%

1 1

+11%

-13.4%

-13.4%

+2.2%

-4.3%

-0.5% -5.5%

+26.9% -2.5%

$925,000

+17.8%

$925,000

+17.8%

18

18 5

5

8

15

45

16

12 3 4 16

Western Bay of Plenty District

% Sale Price Diff Western Bay Median Sale Price of Plenty District Number of Sales from 1yr Prior

36 21 27

57 45 46

36 21 27

43 53 46 57 45 46

Median Days to Sell

Median Sale Price $822,500

% Sale Price Diff from 1yr Prior -4.4%

Number of Sales 50

$822,500 $654,000

-4.4% -11.6%

1050

48 53

$993,000 $654,000

+15.5% -11.6%

1010

25 48

Te Puke Omokoroa

$739,500 $993,000

-14% +15.5%

17 10

58 25

Te Puke

$739,500

-14%

17

58

Location Western Bay of Plenty

Western Bay of Plenty Katikati Omokoroa Katikati

Median Days to 53 Sell

*All Statistics from Real Estate Institute of New Zealand

*All Statistics from Real Estate Institute of New Zealand

Each office is independently owned and operated. NZSIR BOP Limited (licensed under the REAA 2008)

*All Statistics from Real Estate Institute of New Zealand

NZSIR Property Highlights N E W TO T H E M A R K E T

Colenso Country Cafe Brought to the market by Tony & Pip White

156 Hinewa Road, Otumoetai Brought to the market byJeremy Pryor

17-21 Gamman Mill Road, Oropi Brought to the market by Jacob Mackie

SIGNIFICANT SALES

79D Crawford Road, Minden Sold by Jeremy Pryor

Real estate sold by real experts

31B Seales Road, Oropi Sold by Jacob Mackie

07 578 0003 | nzsothebysrealty.com Each office is independently owned and operated. NZSIR BOP Limited (licensed under the REAA 2008) MREINZ.