Our May 2024 Rotorua Property Market Update provides the latest in National and Rotorua residential market trends together with our current market experience of an encouraging lift in the levels of buyer activity and increased sales.
Welcome to our May 2024 market update with the latest statistics based on the REINZ verified sales data to end of April 2024.
National Highlights
- Listings nationally increased by 34.9% year-on-year continuing a trend since the start of 2024.
- The total number of properties sold in New Zealand decreased by 17.3% compared to March 2024, but was up 25.3% year-on-year.
- For NZ excluding Auckland median Days to Sell decreased by 7 days year-on-year from 48 to 41 days.
- The median national sale price has now increased year-on-year for the third consecutive month, however the median price for NZ excluding Auckland has not changed compared with April 2023.
- The Housing Price Index (HPI) for New Zealand in April 2024 was down by 0.8% compared to March 2024 and up by 2.8% compared to March 2023.
- HPI nationally is currently 15.1% below the peak of the market reached in 2021.
Overall
- The trend for more properties listed for sale continues.
- The March 2024 versus April 2024 number of properties sold trended down however year-on-year the positive trend in the number of properties sold continues.
- HPI as the most accurate measure of market trend is static year-on-year with a modest month-on-month increase of 2.8%
Jen Baird, Real Estate Institute of New Zealand (REINZ) CEO comments ““There seems to be plenty of buyer interest, with many seeing the current price levels as attractive, but some are taking their time before making a decision” . . . “Nationally, prices are still below their peaks from a few years ago and sales are still lower than long-term averages. Although the cooler months traditionally lead to activity slowing down, demand for properties may increase as investors return to the market in response to upcoming changes to the bright line test and the reintroduction of interest deductibility on investment properties.”
Rotorua Property Market Update
71 sales were achieved in April 2024 as compared to 77 for March 2024 and 68 sales in February.
The 71 sales achieved for April 2024 was up from 62 sales recorded for April 2023.
There are 510 properties currently (21st May 2024) listed for sale on trademe.co.nz as compared with 530 properties that were currently listed as at 20th April 2024.
The median sales price for April 2024 was $650,000, up from $639,000 for March 2024 and up +8.3 % from the $600,000 median sales price recorded for April 2023.
The key HPI market index trends for Rotorua are:
- -0.9% for April 2024
- -5.2% for the 3-month period Feb-Mar-April 2024
- +1.4% year-on-year
- 5-year average annual HPI increase 5.8% per annum
The Rotorua Property Market for the 3-months ending April 2024 can be summarised as:
- A modest decline in the number of properties currently listed for sale (month-on-month)
- Continued consistency in the number of properties sold
- The increases in median sales prices are contradicted by the more accurate HPI measure of market trend.
- The -5.2% HPI trend for the 3-months Feb-Mar-April 2024 confirms a further softening in the market over this period.
Overall, the Rotorua property market is showing a positive trend in the number of sales and most recently a lift in the level of activity mainly from first-home and home-owner buyers. Rotorua is yet to see a stable or positive market value trend as measured by HPI (Housing Price Index).
Power of 2 Update
The latest REINZ reports for Rotorua demonstrate the importance of tracking Housing Price Index (HPI) as the most accurate measure of market trends.
The increased median sale price gives the impression of a rising market when in fact the HPI trend was static month-on-month and -5.2% for the 3-month period Feb-Mar-April 2024.
The market trend for Rotorua as measured by HPI is yet to stabilise or improve.
The slight decline in number of properties listed for sale probably results from the usual seasonal decline in the number of properties listed for sale together with consistency in the number of properties sold in recent months.
Our current market experience as ‘the Power of 2’ is:
- A lift in sales activity with six properties sold in the last three weeks.
- A lift in buyer inquiry and viewing of properties.
- Several multi-offer scenarios meaning more than one offer presented for a property at the same time.
Why Sell in Winter
Whilst our gardens are not at their best, the real estate market is a ‘supply and demand market.’
The fewer properties for sale especially at a time there are more buyers actively looking to buy is in your favour as the seller.
Winter is typically the seasonal low in the number of properties for sale and the decline from 530 properties advertised for sale in April to 510 properties for sale in May is in-line with this seasonal trend.
Launching your property during the winter months, at a time that it does not ‘compete’ with as many other properties for buyers’ attention is well worth considering.
Bright-line Property Rule Changing
The good news for rental property owners is that from 1st July 2024 the bright-line property rule is changing.
If you sell a property after the 1st July 2024 the bright-line property rule will apply only if the property is sold within two years of purchasing it. You do need to consult with your accountant who is your tax expert for absolute clarity on how this rule change impacts you.
We are fielding inquiry from rental property owners who have been trapped in a 5-year or 10-year bright line scenario and facing the pressure of rising interest rates with substantial increases in the cost of servicing mortgage debt.
Whether you are a homeowner considering the advantages of selling in the winter months or a rental property owner who is wanting to review your portfolio you are warmly invited to contact us for your free no-obligation property appraisal.=
And that is as easy as clicking this link to book your free no-obligation appraisal:
We wish you and your loved ones all the very best, and for all things real estate contact us today!
