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Current market numbers and performance
105 homes sold in Tauranga in the last month of figures. This is a lower number than we’ve seen lately, and is likely driven down by the shortage of properties for sale.
More interestingly we’ve seen some more unusual volumes in the price brackets. The $275,000 to $350,000 range
was weaker than we would expect and accounted for only 26% of sales. The $400,000 to $600,000 range
was very strong, accounting for 30% of sales.
All year we’ve seen this is a trend of lowers numbers of sales in the low prices and more sales than normal in the middle prices. However it’s even more pronounced in this last month of figures than usual.
The market slowed down slightly for the election, but as we know there was no change and things are looking solid now.
In a continuing theme we’re still seeing the effects of the LVR rules, which mostly affect sales at the lower end of the market. However we’re hearing that the banks have money to lend even if you fall within the restrictions placed by the Reserve Bank. So it’s worth knocking on the banks’ doors to see what they can do.
Experienced property investors have been active in the market, especially in the lower price ranges. We’ll be watching to see the follow on affects of this.
Interest rates look like they’ll remain stable which is good news for buyers. We’re seeing very low numbers of listings. This means there is a a limited choice for buyers. Purchasers are struggling to find homes.
On the flip side, the market is better than ever for sellers. The shortage of listings is obviously leaving buyer demand unfilled so now is a very good time to be selling.
We would have expected prices to rise with the high demand and a shortage of supply, however buyers have been discerning so we haven’t seen any dramatic price rises in Tauranga. It seems that house prices have reached an equilibrium and that is where house prices are sitting.