The Tauranga housing market is continuing to slow, according to Quotable Value's Tauranga spokesperson Shayne Donovan-Grammer.
QV's latest figures for March show property values in Tauranga have increased by a marginal 0.1 per cent on the same period in 2009, but is down on the one per cent increase in February.
The average sale price for the city decreased from $422,746 to $413,173.
Shayne expects the city's housing market to slow persistently for the time being.
"First home buyers are still the most active; they're looking to secure a home before interest rates increase later this year. Banks are also currently offering over 80 per cent lending, which makes a big difference to those trying to save deposits."
But he says investors are the most inactive in the local property market.
"In Tauranga, most investors buy for capital gain, not for high returns. With no prospect of significant capital gain in the foreseeable future, there isn't much incentive to invest."



0 comments
Leave a Comment
You must be logged in to make a comment.