The Power of 2

Rotorua Property Market Update: October 2024 Insights, Trends and Prices

October 19, 2024
Oct 2024 Property Market Update, The Power of 2, Arizto Rotorua

Our October 2024 Rotorua Property Market Report is essential reading for all Rotorua homeowners. Read on for encouraging news . . . the Rotorua Property Market is outperforming the national trend!


Welcome to our October 2024 Rotorua Property Market update with the latest news from the REINZ verified sales data reports to the end of September 2024.

National Highlights

  • Sales in NZ (excluding Auckland) increased by 4.5% year-on-year.
  • NZ’s national inventory level (excluding Auckland) rose 27.8% year-on-year and 1.8% month-on-month.
  • Housing Price Index (HPI) as a measure of market trend is: +1.0% for September 2024, +0.8% for the 3-month period July-August-September 2024, and -0.4% year- on-year.
  • Nationally the median days to sell are 49 days.
  • Average annual growth in the NZ HPI over the past 5 years has been 4.9% per annum.
  • The NZ HPI is currently 15.8% below the market peak reached in 2021.
  • Salespeople around the country have noted an increase in buyers attending open homes, more so that the usual spring lift expected at this time of year.
  • The Reserve Bank has reduced the OCR (Official Cash Rate) by 50 basis points to 4.75%.

Overall

  • As measured by HPI the market trend has been modestly positive for September 2024 and the 3-month period ending September 2024 and is very nearly ‘flat’ over the 12-month period ending September 2024.
  • The trend for more properties coming to market has continued.
  • The Reserve Bank reduction in the OCR has introduced more optimism regarding an anticipated lift in buyer activity and sales resulting from this.
  • Real estate agents across the country are reporting an increase in the levels of buyer activity, which they consider to be tracking above what is typically expected for this time of year.

REINZ Chief Executive Jen Baird is quoted as saying “After the Reserve Bank reduced the OCR rate by 50 basis points to 4.75% the market is expected to see more activity from those who are ready to buy, reinforcing the optimism in the market, and this will likely be reflected in the coming months’ reports.”

Rotorua Property Market Update

  • 72 sales were recorded for September 2024, compared to 74 sales for August, 61 sales for June, 83 sales for May, 81 sales for April and 77 sales for March.
  • The 72 sales recorded for September 2024 was notably higher than the 57 sales recorded for September 2023.
  • There are currently (as at 18 October 2024) 474 properties listed for sale in Rotorua (trademe.co.nz), as compared to 458 listings as at 21 August, 502 listings as of 9 July, 510 listings as at 21 May, and 530 listings as of at April.
  • Housing Price Index (HPI) as the more accurate measure of market value trend was reported as: 2.4% for September 2024, 0.5% for the 3-month period July-August-September 2024, and +2.6% year-on-year.

Overall

  • There has been a slight ‘spring’ lift in the number of properties listed for sale, however overall, there is still a relatively modest number of properties on the market.
  • Sales volumes have improved year-on-year but remain at modest levels.
  • Rotorua’s HPI results show that Rotorua had a pleasing positive 2.4% ‘bounce’ in September, lifting the 3-month result to 0.5%, and a year-on-year +2.6% upward trend.
  • As measured by HPI Rotorua is currently outperforming the national trend.

Power of 2 Update

Good news!

The Rotorua Property Market is continuing to outperform the national trend, and it is exciting to see HPI trending in a positive direction.

The Reserve Bank reduction in the OCR is welcome news – and the market expectation is that this should result in increased levels of buyer activity in the coming months.

As ‘the Power of 2’ Veena and I achieved 5 sales for the month of September! This is a very pleasing result for our sellers.

There is a marked ‘lift’ in level of buyer activity. We are seeing more prospective buyers viewing properties (open homes and view by appointments) and buyers are starting to show an increased sense of purpose and urgency in their search for a property to buy.

The ‘value added’ with our introduction of Virtual (AI) Staging (at no cost to our sellers) was demonstrated in our recent sale of 25 Wingrove Road, Owhata. This vacant property was ‘brought to life’ with AI Staging. We had 10 parties through the first open home and a seriously good offer early the following week. Launched on 12 September the successful purchaser declared their agreement unconditional on 10 October 2024 – that’s 27 days from launch to sold!

There has only been a modest lift in the number of properties listed for sale – so the opportunity is now if you are considering selling and want to take advantage of more buyers being focused on a relatively limited supply of properties for sale.

Whilst you may not have made a final decision, now is the time to take advantage of our free no-obligation Property Appraisal service. Please call us on 027 672 7263 or fill out our Free Property Appraisal Request Form.

We wish you and your loved ones all the very best and for all things real estate you are warmly invited to contact us today.


Wayne and Veena Hemingway - The Power of 2, Arizto Rotorua - October 2024

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