The Tauranga residential property market is dwindling with entry level property values heading for a four year low.
QV’s residential price index for April shows the price floor for entry level properties is now heading below $200,000 a first in four years for Tauranga.
Tauranga values as a whole have been gradually trending down in the past few months, dropping 0.6 per cent in the past three months.
Despite the downward trend, QV statistics show Tauranga values remain 0.7 per cent above the same time last year and are 11.5 per cent below the 2007 peak.
The average sale price in Tauranga in the past three months was $388,781.
QV Valuer Paul Thomas says the majority of sales activity in the region are from from first home owners.
“Lower end properties are receiving the most interest with first home buyers entering the market as younger couples with smaller deposits have been able to enter the market for the first time in years due to the Welcome Home Loans programme.
“The remainder of the residential market is ticking over.”
Nationwide, residential property values resumed their gentle rise in April.
Values are up 0.4 per cent in the past three months and 3.1 per cent in the past year.
They are now 2.9 per cent below 2007’s market peak.
The average sale price nationwide for the past three months was $397,905.