Housing market due to pick up

The Tauranga housing market is expected to pick up in the next three months as people look to move into the Bay of Plenty for summer.

Registered valuer for QV Valuations in Tauranga Shayne Donovan-Grammer says the Tauranga market has not seen any significant changes in the last few months, but expects a gradual increase in activity from now until the end of 2011.

“I would expect to see more activity as prices continue to hold and people start moving into the area for summer,” says Shayne.

“People tend to start looking to purchase at this time of year, with summer coming up, students are finishing their studies and moving into the area and people will hold off selling until summer.”

Statistics from QV Valuations show the average house price in Tauranga in August was $427,414.

Shayne says most buyers are first home owners looking in the $200,000 to $400,000 bracket.

“The main buyers are first home buyers trying to get into the market as prices are quite realistic and interest rates are low. Banks are also lending more of a deposit.”

With a central location being at the top of the purchase list, Shayne says people wanting a house under $400,000 tend to look in Greerton and Otumoetai and those with a budget above $400,000 are looking in Matua, Pillans Point and the Avenues.

“These are the areas surrounded by higher values and have the safety factor.

As housing and retail developments continue in the Bethlehem area, Shayne says this is a very appealing option for buyers, especially families.

“Traditional buyers looking to have an older house in an established area will buy in the Matua, Pillans Point whereas people looking for a new house in a good location are more likely to buy in Bethlehem.”

Shayne says there is less high-end property selling in Tauranga than there traditionally has been, due to a lack of investors.

“There is not really any capital gain in Tauranga – 95 per cent of property in Tauranga won’t get a good return.

“A lot of potential sellers who purchased properties in the last five years have come to the realisation they may not receive an offer price the same or greater than when they purchased. This means they are in a holding and waiting pattern to see what the market does.”

In the present climate Shayne says buyers are being more conservative.

“Buyers aren’t in a hurry either as they perceive the market isn’t going to ‘get away from them’ any time soon.

They are also being much more thorough before committing themselves as the market conditions allow them to be.”