Property demand soars as stock dwindles
Would-be buyers don’t dare delay for fear prices will keep climbing and bank rates rise in the New Year
Some properties in the city are selling at between $50,000 to $100,000 more than vendors’ expectations. The news comes as a report reveals all Rotorua houses have sold above their original purchase prices in the last three months as the market reaches record highs.
Rotorua real estate agents say properties are attracting multiple offers and fierce competition, with many people prepared to pay well above what vendors anticipate.
Corelogic’s latest Pain and Gain report showed Rotorua residents who sold their home in the third quarter of 2020 made amedian profit of $248,500 per property.
The city’s gross profit from resales between July 1 and September 30 was $50,636,112.
There were no sales made below the original purchase price.
Corelogic senior property economist Kelvin Davidson said nationally and in Bay of Plenty, listings were still tight, demand from investors and first-home buyers was strong, which pushed up prices.
“The upshot is that anybody who had held their property for a number of years is almost guaranteed to sell for more than what they paid.
“I can’t see these trends turning around to any great degree in the short term either, so I’d expect ‘gain’ to stay pretty strong in our next report (covering Q4), and also into 2021.”
Professionals Mcdowell Real Estate co-owner Steve Lovegrove said nearly every property it was selling was by auction or multiple offer.
Lovegrove said a home’s value was now determined not by what the buyer was prepared to pay but the maximum capacity of what the buyer