Market Overview - June 2023

The latest REINZ data for June 2023 presents a mixed picture of the Bay of Plenty real estate market in New Zealand. The average days to sell increased by 2 days from the previous month, now at 57 days, the longest recorded in the last five years. Despite this, the median house price rose by 5.7% from May to reach $840,000, although still down 7.6% from a year ago.

The number of sales in the Bay of Plenty region remains relatively low at 330, although there has been an improvement compared to the same time last year when it was 272 sales. Low inventory levels are putting pressure on prices, resulting in competitive situations for buyers seeking housing solutions.

On the positive side, more buyers are showing a sense of urgency, likely influenced by the Reserve Bank’s decision to maintain the OCR at the same level, as well as low unemployment and high job security. While inflation experienced a spike, many expect the cost of living to come under control, offering some relief.

Diverse segments of the population are experiencing the impact of changing market conditions differently. Some are feeling the strain of higher interest rates and increased living costs, while others are benefiting from higher wages and are eager to seize opportunities in the repriced real estate market.

It is this writers opinion that for owners considering selling we are seeing a period of predictability in the market that hasn’t been seen since pre-covid times. Buyers are showing increased confidence and there is limited competition for sellers with very low inventory of homes for sale in the region so a great time to be in the market to sell.

AUTHOR HAYDEN DUNCAN - Managing Partner - Hayden Duncan