NZSIR Bay of Plenty February Market Report

February 2023

New Zealand Sotheby’s International Realty Residential Market Report

Market Overview - February 2023

Furthermore, with the increase in activity and higher volumes of sales in auction rooms and multi-offer situations, it is clear that buyers and sellers are still keen to engage in the market. Choosing the right agent is also critical to achieving the best possible outcome, especially in this ever changing market environment.

It is this writers view that while the recent decline in sales volumes and median prices may be a cause for concern for some, there are still opportunities for both buyers and sellers in the New Zealand real estate market. There is a saying that I have been hearing a lot again lately, “It is better to buy on the way down than chase prices on the way up”. This does seem to sum up the view of many buyers as no one can pick the turning point of the market and we have already seen confidence in buyers returning in the region, the question now is how long will it be before prices start to reflect the buyer activity increases.

AUTHOR HAYDEN DUNCAN - Managing Partner

The New Zealand real estate market has seen a decline in median house prices and sales volumes in February 2023 compared to the same period in the previous year. National data shows that the median house price value has dropped by 13.9% to $762,000, while volumes of sales dropped by 31.1% year on year. Additionally, the inventory of listings across New Zealand has increased due to a rise in days on market to sell, which has increased from 42 days to 60 days, an 18-day increase from the same time last year.

In Bay of Plenty, the median price dropped to $821,000, down 15.3% year on year, and sales volumes dropped by 38.9% compared to February 2022. However, changes in the price brackets that are selling indicate that there is a continued increase in the first home buyer market. The region saw an increase in volume of sales from January to February, up by 69.8% off a record low volume.

Despite these challenges, there are reasons for optimism in the New Zealand and Bay of Plenty real estate market. Many buyers who had been sitting on the sidelines are now taking advantage of the current market conditions to purchase properties, and astute property owners wanting to sell and move on are considering the price difference to move which in many cases is less than over the last few years. The market is starting to show signs of recovery, and the values are still well above the pre-Covid levels.

It is also important to note, the market remains resilient, having weathered many economic ups and downs over the years, and the long-term outlook is positive for housing considering housing supply and demand. Therefore, both buyers and sellers should approach the market with a sense of optimism and our advice is engage with experienced agents who can help them navigate the changing conditions to achieve the best possible outcomes.

- 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 as Managing Partner of BOP NZSIR.

'Choosing the right agent is also critical to achieving the best possible outcome, especially in this ever changing market environment.”

REINZ Market Summary | February 2023

Western Bay of Plenty District

2023 Median Sale Price change since last year -15.3% Median Sale Price Overall Sales Bay Of Plenty $821,000 Total Number of Sales Bay Of Plenty 253 Median Days to Sell Bay Of Plenty 71 *All Statistics from Real Estate Institute of New Zealand Tauranga City Location Median Sale Price % Sale Price Diff Number of Sales Median Days to Tauranga City $907,000 -17.5% 164 73 Tauranga Suburbs Bellevue $732,500 -4.4% 2 67.5 Bethlehem $1,200,000 +4.3% 12 44 Brookfield $801,232 -9.4% 5 112 Gate Pa $490,000 -35.5% 6 82 Greerton $750,000 -13 7% 5 102 Judea $670,000 -20.2% 1 112 Matua $1,465,000 +54.2% 4 151 Maungatapu $895,00 -1.6% 5 49 Mount Maunganui $821,500 -40.9% 27 67 Ohauiti $930,000 -26.5% 6 85 Otumoetai $850,000 -33.1% 5 69 Papamoa Beach $950,000 -12% 44 81 Pyes Pa $990,000 -21.1% 17 71 Tauranga Central $963,500 -1.7% 6 64 Tauranga South $670,000 -39.1% 10 56 Welcome Bay $759,000 -28.4% 11 66

REINZ Market Summary FEB

Location Median Sale Price % Sale Price Diff Number of Sales Median Days to Western Bay of Plenty $870,000 -17.1% 20 54 Katikati $700,000 -19.5% 4 88 Omokoroa $1,015,000 -16.3% 5 93 Te Puke $824,500 +12.9% 4 43

Each office is independently owned and operated. NZSIR BOP Limited (licensed under the REAA 2008) Median Sale Price change since last year -15.3% Median Sale Price Overall Sales Bay Of Plenty $821,000 Total Number of Sales Bay Of Plenty 253 Median Days to Sell Bay Of Plenty 71 *All Statistics from Real Estate Institute of New Zealand Tauranga

Location Median Sale Price % Sale Price Diff Number of Sales Median Days to Tauranga City $907,000 -17.5% 164 73 Tauranga Suburbs Bellevue $732,500 -4.4% 2 67.5 Bethlehem $1,200,000 +4.3% 12 44 Brookfield $801,232 -9.4% 5 112 Gate Pa $490,000 -35.5% 6 82 Greerton $750,000 -13 7% 5 102 Judea $670,000 -20.2% 1 112 Matua $1,465,000 +54.2% 4 151 Maungatapu $895,00 -1.6% 5 49 Mount Maunganui $821,500 -40.9% 27 67 Ohauiti $930,000 -26.5% 6 85 Otumoetai $850,000 -33.1% 5 69 Papamoa Beach $950,000 -12% 44 81 Pyes Pa $990,000 -21.1% 17 71 Tauranga Central $963,500 -1.7% 6 64 Tauranga South $670,000 -39.1% 10 56 Welcome Bay $759,000 -28.4% 11 66

City

Location Median Sale Price % Sale Price Diff Number of Sales Median Days to Western Bay of Plenty $870,000 -17.1% 20 54 Katikati $700,000 -19.5% 4 88 Omokoroa $1,015,000 -16.3% 5 93 Te Puke $824,500 +12.9% 4 43

REINZ Market Summary | February 2023