Market Update – September 2024

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Surge in First-Home Buyer Activity in BOP

At East Realty, we’re excited to report a significant uptick in activity among first-home buyers. This surge is largely driven by two key factors: the recent drop in interest rates and the stabilisation of home prices. With lower borrowing costs, homeownership is becoming more affordable, making it an appealing option for many potential buyers. As we approach spring—traditionally a busy season for real estate—this trend is even more pronounced.

Home prices, after a period of volatility, have now stabilised. This levelling-off has created a sense of urgency among buyers, who understand that further price reductions are unlikely. Many first-time buyers are seizing this moment, eager to purchase before prices rise again.

Looking ahead, we anticipate that increased activity from first-home buyers will have a ripple effect across the broader real estate market. Their presence is likely to spark more interest and transactions in other segments, supporting overall market recovery. We’re optimistic this momentum will continue as we move forward.

Our 2025 forecast points to a gradual rise in home prices, driven by stronger economic conditions, sustained demand, and a potential tightening of supply. For both buyers and investors, the message is clear: now is the time to act and make the most of the current market conditions. 

At East Realty, we remain confident in the market’s recovery and committed to guiding our clients through these changing times. As we head into spring, we expect even more positive signs of growth and stability. Our team is here to offer expert advice and personalised support, helping you navigate the real estate market with confidence.

Trevor East –  Director

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BOP Market Sentiment

Bay of Plenty Market Sentiment: The median price for Bay of Plenty increased by 1.3% year-on-year to $780,000.

“Owner-occupiers and first home buyers were the most active buyer groups, with reports of lifestyle property buyers and investor enquiries increasing in Tauranga.

Most vendors were taking offers seriously and were willing to meet market expectations. Attendance at open homes increased in the last two weeks of August, with auction attendance and activity varied depending on the properties for sale.

Market sentiment was influenced by the decline in the OCR and the increase in listings, which led to more choices for buyers and declining interest rates. Local agents are cautiously optimistic that sales will increase moderately as warmer weather approaches.” Jen Baird – REINZ CEO

  • Compared to August 2023
    Median Price – up 1.3%
    Sales Count – up 16.2%
    Days to Sell – up 4 Days
  • Compared to August 2024
    Median Price – down -3.1%
    Sales Count – up 3.5%
    Days to Sell – up 7 days

Source: REINZ

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Tauranga Rental market Sentiment

In August 2024, the rental market in Tauranga and Mount Maunganui continued to experience notable trends. The average weekly rent in Tauranga remains at around $680, reflecting an increase of approximately 7.46% over the last four years. This gradual rise aligns with overall property price trends in the region, which have stabilised after the market downturn post-2022.

Tauranga remains an attractive destination for renters due to its proximity to employment hubs like the Port of Tauranga and the thriving kiwifruit industry. The demand from returning expats and tourists choosing Mount Maunganui for its lifestyle continues to support stable rents in these areas. However, tenants have more choices as listings increase, so properties need to be priced competitively. .While house prices have decreased since their peak in early 2022, rental prices have held firm, and there are no signs of a major decline in the near future

The NZ rental market is flush with listings: In August, we recorded a 31.5% increase in rental listings year on year, with increases in 18 of 19 regions. The national average weekly rental price was up 3.6% year-on-year at $648, a slight drop of 0.3%, compared to last month.

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The NZ Property Market

In August, the New Zealand Property Report saw a return to seasonal listing trends, with an 8.1% increase in new listings year-on-year and increases in 18 of 19 regions.

Housing stock dipped below the 30,000 mark for the first time since January, suggesting a shift, driven by falling interest rates and boosted buyer confidence. For your vendors, this is a positive sign that the market is starting to move.

Great news for your vendors – we’ve seen buyer activity rebound after the recent OCR cut. 

In August, we saw signs of increased demand. Enquiries are up 11.6% compared to the same time last year and this was particularly noticeable after the OCR drop. 

In the two weeks immediately after the announcement, enquiries on residential properties for sale jumped by 8.5%. We also recorded a 5.5% rise in saved properties and a 6.2% increase in saved searches on our platform, when compared to the previous period.  

This helps to show your vendors that buyers are engaged and actively searching. Overseas interest is also growing, with a 9.5% rise in searches from international buyers – expanding your reach to a global audience.

Source: realestate.co.nz

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