Read the article or watch the video. Graphs are also included.
Current market conditions
121 homes sold in Tauranga in July. That number is consistent with the number sold over the past two years.
We saw a more normal curve in the sales graph as you can see below. Sales were strong again in the $450,000 to $550,000 range which was 20% of the market. We also saw strong numbers in the $250,000 to $350,000 range. A few homes sold around the million dollar mark which continues to be a positive sign.
The effects of the LVR rule are easing off. We’re seeing more sales in the bottom end of the market. The $250,000 to $350,000 range equated for 43% of the market. So those sales are definitely happening again now.
There’s also room for more leniency from the banks. The Reserve Bank required banks to restrict loans with less than 20% deposit to no more than 10% of the loans granted, however recent figures show it has been around 6.5%. This means there is room for banks to ease more on how strictly they apply the rules.
Traditionally people say spring is a good time to sell a home as the improving weather causes more people to come out and also causes properties to look better. However it’s a bit of myth as the sales figures for the last few years show there is no significant difference between winter and spring.
With that said, now is a great time to be selling because of the market conditions, not because of the season.
Elections usually do effect the market, but not because of any political changes. The effect is a mental one more than a real one as some people stand back a little bit and wait. In reality we don’t see any significant impact from the election.
The numbers have been very consistent, so I’m expecting to see consistent numbers going into summer and Christmas. There’s still good demand from buyers and people coming into Tauranga. We’re still looking to get more homes onto the market to meet the demand.