Real estate sales and prices in Tauranga have softened from September to October according to figures from the Real Estate Institute of New Zealand.

While the median price across the region increased $20,000 or four per cent compared with October 2016, prices in the Western Bay of Plenty rose four per cent but fell five per cent in Rotorua and two per cent in Tauranga.

But compared to September the median price decreased $27,500, a five per cent drop, with Whakatane district leading the way with a 19 per cent decrease and Western Bay of Plenty and Tauranga following suit with seven and six per cent decreases.

But on a seasonally adjusted basis, the median price fell three per cent compared to September, indicating the decrease in median price is a little more than would be expected at this time of year, says REINZ regional director Philip Searle.

"After a very wet spring, more listings are slowly coming to the Bay of Plenty market and auction clearance rates have improved. Prices are still holding firm with premiums being achieved for quality property,” says Philip.

'However, there are more conditional deals now that are subject to sale of an existing property or finance, and lending in the region is still restrictive. Looking forward, we anticipate more of the same, with some investors selling as they are concerned by the talk coming from the new government."

Compared to September, sales volumes decreased by five per cent with sales count decreasing 14 per cent in Western Bay of Plenty, eight per cent in Tauranga and six per cent in Whakatane - but increasing nine per cent in Rotorua.

Compared to October 2016, sales across the region fell 21 per cent with sales halving in Western Bay of Plenty, dropping 23 per cent in Rotorua, 10 per cent in Tauranga and six per cent in Whakatane. On a seasonally adjusted basis, sales for October decreased seven per cent compared to September, indicating that an increase in sales count was expected at this time of year, rather than the observed decrease.

The number of days to sell eased by three days in October, from 37 days in September to 40 days in October. The number of days to sell eased by three days compared to October 2016. Over the past 10 years the average number of days to sell during October for Bay of Plenty has been 50 days. Compared to October 2016, the level of inventory across the region has increased by two weeks to sit at 14 weeks of inventory in October 2017.