Here’s a look at how the Tauranga market performed in 2015 and what we can expect heading into 2016. Read the article or watch the video…
Market conditions in Tauranga
The last year has been a roller coaster ride with the number of homes selling varying wildly. There were 202 sales in May, it was down in June, back up to 216 in July, back down to the mid hundreds in August and September, then October and November were back up to around the 200 mark. There are still a lot of purchasers around. It seemed a little quieter in November, but since then there has been more activity.
The $300,000 to $350,000 range has always done well over the years. Now we’re seeing an interesting change, which is when there has been a month with a larger number of sales, then the sales in the $400,000 to $600,000 range have been very strong.
You won’t see many houses on the market in Bethlehem and the number of listings there is varying. This means it’s competitive amongst buyers and an excellent time for sellers to list in this area.
Brick and tiles homes are still getting a premium, there is solid safety in these type of homes. There are still purchasers interested in the monolithic style of cladding but they are more discerning and these homes are generally not getting the premium prices. The average price has moved up, which can be attributed to the premium types of homes attracting buyers who will fight for them. These types of homes can also sell very quickly.
We’ve seen a huge number of auctions recently and it’s a method that needs to be considered. However other methods should be considered as I’ve seen a lot buyers resistant to auctions. When I have put a price on a property the number of people interested has spurred up.
As much as I’d like to make a prediction for 2016, the problem is we don’t really know what will happen. The interest rates are stable which usually means the market stays pretty stable. We also usually follow Auckland to some degree and their market is softening. The question is how quickly will we follow Auckland if we do follow them. As we’ve seen from the last six months, our market has been on a rollercoaster ride, so it will be interesting to see how far that carries into 2016.