Here’s the latest update on the Tauranga real estate market. We cover whether house prices are really rising, the effects of Reserve Bank’s loan rules, the number of homes sold and the opportunities for buyers and sellers.
As always, you can watch the video or if you prefer, read the article. Graphs are also included below.
Current market conditions
114 Tauranga homes sold in April. This is a number pretty much in line with the last six months of activity.
Sales in the $250,000 to $300,000 range are back up. This price range represents 26% of the houses sold. I put this mostly down to the banks loosening up on their Loan to value ratio (LVR) rules. This area of the market has been lower than normal over the past six months, but now we’re seeing it coming back closer to normal levels.
We also saw good numbers of homes sold in the $400,000 to $425,000 range.
Buyers and sellers
The low amount of homes for sale had been an issue for some time now and is still affecting the sales figures in most price ranges, especially mid to high price brackets.
There are great opportunities for sellers who list their home to get a good market price. Buyers still need to be ready to move ad their is still a bit of a shortage of homes for sale.
The media has again been talking about a rise in house prices because the median house price has risen. However this does not mean house prices in Tauranga have actually risen. It can mean that we’ve just been seeing more houses sold in the higher price brackets, and thats causing the median price to be higher. I would argue that is the case, and we’re not actually seeing any significant price rise in Tauranga.