House hunters don’t dare delay
could afford.
“Properties are selling to the capacity that buyers can afford to pay,” he said.
“They are in a forced position to pay the capacity of their budget.”
Harcourts Rotorua sales manager Colville Barbour said the city’s housing market had experienced significant growth, especially since lockdown, and they were seeing a lot of properties attract multiple offers.
“Under this competitive environment, we have seen in some instances, prices exceed asking price and vendor expectation.
“Recently at auction, a home sold approximately $100,000 above vendor expectation. The market continues to be bullish with strong buyer inquiry and a shortage of stock.”
Oneroof editor Owen Vaughan said a lot of the gain people had seen on their homes would have come from a post-covid period.
“These extra dollars are coming from a heated market,” he said.
“That’s evident in the Rotorua market, which has picked up speed and has been supercharged like Tauranga in the last couple of months.”
Vaughan said Tauranga and Rotorua had seen a record few months and “it’s going to get hotter”.
“Buyers are having to stretch themselves . . . they are having to make the best offer that’s out there.”
Tremains Rotorua sales manager Megan Davies said if a valuation was completed in 2017, aminimum 30 per cent increase was expected.
“Generally, now we see 40 per cent, which just reflects the standard annual increase.”
However, auctions did result in higher prices paid: “Because once in the auction room, the buyer gets social justification that someone else is bidding up so they are confident they are not paying too much.
“Clever and compulsive marketing will achieve competition so auction or deadline can be equally efficient to bring higher prices out.”
Davies said the market was a source of FOMO (fear of missing out) for some and people were keen to buy before prices escalated further or bank rates increased.
“The current trend is, I feel, still an
adjustment as Rotorua hasn’t seen massive growth but just steady in line of 10 per cent year-on-year, so the ‘profit’ is being realised on previously low values.”
Alack of stock affected themarket, plus people’s fear that prices would be higher in the New Year, or interest rates might rise.
First National principal and Rotorua Real Estate Institute of New Zealand spokeswoman Ann Crossley said almost all property was selling above expectation. She said a home had just sold for about $50,000 above the property appraisal.
“There’s more pressure at the moment because there’s less stock.”
But she said it depended on the price the property went to market for.
“For example, we priced a home for about $449,000 and it had no inquiry so we got the price down to $399,000 and it got multi-offers and sold for above $400,000.”