Our June 2024 Rotorua Property Market Update is your ‘go to’ source for the latest in National and Rotorua property market trends. Read on for encouraging news of increased buyer activity, viewings, offers and most importantly sales!
Welcome to our June 2024 Rotorua Property Market update with the latest statistics based on the REINZ (Real Estate Institute of New Zealand) verified sales data to end of May 2024.
National Highlights
- Total number of properties sold in NZ increased by 8% compared to April 2024, and 6.8% year-on-year.
- Total number of listings rose 25.4% continuing a trend of more new listings coming to market from the start of 2024.
- Median days to sell for ex-Auckland was 43 days in May , as compared to 41 days for April, and down 8 days year-on-year.
- The HPI (Housing Price Index) was reported as: -1.0% for May 2024, -2.9% for the 3-month period March-April-May 2024 and +2.3% year-on year.
- Average annual growth in the NZ HPI over the past five years has been 5.5% per annum and is currently 15.9% below the peak of the market reached in 2021.
Overall
- The trend for more listings coming to market has continued.
- The number of properties sold has continued to rise and is up 25.4% year-on-year.
- A modest but negative trend in HPI for May 2024 and for the 3-month period March-April-May 2024 shows that nationally the market trend has yet to stabilize.
Rotorua Property Market Update
83 sales were achieved in May 2024 as compared to 81 sales for April 2024 (an updated statistic), 77 sales for March 2024, and 68 sales for February 2024.
The 83 sales achieved in May 2024 were in-line with the 81 sales recorded for May 2023 (same month last year).
There are currently (9th July 2024) 502 properties listed for sale for Rotorua on trademe.co.nz, as compared with 510 listings as at 21st May 2024), and 530 listings as at 20th April 2024.
The key HPI market index trends for Rotorua are:
- -1.6% for May 2024
- -3.4% for the 3-month period March-April-May 2024
- -0.2% year-on-year
- 5-year average annual HPI increase of 5.6% per annum
Overall
- The Rotorua property market is continuing to show a stable increase in the number of properties sold.
- The number of properties listed for sale has declined slightly over the past 3 months, which in line with the usual seasonal trend of fewer listings over the winter months.
- The continued negative trend in HPI market index demonstrates that market values are still in decline.
- Rotorua is yet to see a stable or positive HPI index market trend.
Power of 2 Update
Whilst the market value trend as measured by HPI is not moving in a positive direction, we do have encouraging news.
We achieved the sale of six properties in May 2024, our best recorded month for some time.
Currently we also have another four properties under contract.
We are seeing a continued increase in the number of prospective buyers viewing properties either at open homes or view by appointments, together with an increase in the number of offers being made inclusive of multi-offers (more than one offer presented at the same time).
Achieving sales in the current market does not happen by accident. We are working with our sellers to strategically market their properties to attract buyer interest. This is supported by the Arizto high-impact marketing campaign (free to sellers) to make your property really stand out.
Coming to understand where your property sits in the current market, before you go to market, is more important than ever and is the start of a successful marketing and sale process.
The good news is that our Property Appraisals are free and no-obligation. Further we invest the time and care to research the most recent comparable sales data for inclusion in your Property Appraisal.
If you are thinking of selling you are warmly invited to Book a free appraisal to find out more about where your property sits in the current market.
Why Sell in Winter
As we progress into winter the number of properties listed for sale in Rotorua has continued to modestly decline.
Listing your property for sale at a time that it does not ‘compete’ with as many other properties for buyers’ attention is well worth considering.
New Bright-line Test
The new bright line test came into effect from 1st July 2024.
Currently the bright line rule will apply to rental properties only if the property is sold within two years of purchasing it. We strongly recommend you further research and verify your unique circumstances with your accountant and/or lawyer to have absolute clarity on this point.
We are fielding inquiries from rental property owners who have been ‘trapped’ in a 5-year or 10-year bright line scenario and are now taking the opportunity to reconsider their options.
We wish you and your loved ones all the very best! And for all things real estate contact us today!
