Despite the nation's total farm sales increasing by 6.6 per cent since May 2012, the Bay of Plenty recorded a decrease in rural real estate sales last month.

May 2013 figures released from the Real Estate Institute of New Zealand this week show farm sales in the Bay region decreased by 12 per cent since May last year, from 34 farm sales to 30 last month.

Lifestyle block sales also declined 22 per cent, from 140 in May 2012, to 109 in May this year.

Federated Farmers vice president John Scrimgeour puts the decreases down to the declining number of farms in the region.

John says a price drop for farms in the last five years is another contributing factor for why people are hesitant to sell.

'People that don't have to sell are reluctant to sell given that prices are lower.”

He is not concerned in the short term but believes if farm sales continue to decrease the region will be affected.

'In the long term we need a turnover of farms with new owners and ideas with energy to drive the productive capacity.”

The Bay of Plenty is among eight regions recording a decrease in farm sale volumes. Southland took the biggest fall of 11 less sales, while Nelson sold nine less.

REINZ rural market spokesman Brian Peacocke says despite decreases in some areas the nationwide sales remain steady.

'In spite of the earlier dry conditions that resulted in some vendors being reluctant to commit to the marketplace, sales volumes have remained steady, prices have remained fully firm and the demand for rural property has been consistently strong across the country.

'Across the country cautious optimism is being expressed that buoyancy in the rural sector will push positive cash flows into the wider economy.”