Average property values in Tauranga are now above the $900,000 mark for the first time as prices continue to rise across the region.
House price averages in the city are now creeping toward the $1 million range but experts are still predicting a potential slowdown is around the corner.
According to the latest statistics and analysis from the CoreLogic Housing Price Index, Tauranga house prices are up 2.7 per cent compared to last month.
That rise helps formulate a quarterly increase of 3.7 per cent but it is compared to last year that the increase is most markedly apparent.
House prices in Tauranga are up 19 per cent compared to last year, a rise of over $147,000.
The report does however point out that the annual measure is impacted by the housing market stalling 12 months ago as New Zealand moved through and out of the first Covid-19 related lockdown.
The average house price in Tauranga now sits at $922,000.
“Owner occupiers moving house remain an active buyer group in Tauranga, picking up 30 per cent of sales in 2021,” says CoreLogic head of research, Nick Goodall, explaining the data.
“However investors, either using a mortgage to secure the purchase or not, continue to pick up the greatest share of sales, at 45 per cent so far in 2021.”
Across the Western Bay of Plenty house prices are up 16.6 per cent based on the same period last year. Rotorua, Kawerau, Whakatane and Opotiki have also experienced glaring percentage rises.
Across the nation the annual rate of growth increased to 18.4 per cent from 16.2 per cent last month.
However, it is still expected that the housing market should soon begin to slowdown.
“It may come as a surprise to see the monthly pace of property value growth accelerate in April after the Government introduced the phased removal of interest deductibility for property investors,” Nick explains.
“However it may take another month or so for these changes to flow through due to the monthly index reading including sales recorded over the past three months.
“We expect a downside impact on housing market growth to become evident over the coming months.”