Homes in New Zealand's Tauranga area have recently seen a 4% increase in their value, and it is believed that a major contributing factor to this is from expats returning to their native Tauranga, Auckland residents deciding to move south, and even international expats moving to New Zealand.
The increase of value in Tauranga homes means that now the prices sit only 5% below their peak back in 2007. Western Bay of Plenty home prices have also increased year by year to the point where the asking prices now sit just 5.8% below the 2007 peak prices.
Trend for Higher Priced Housing
Estate agents in the area said that many new buyers wanting to spend money in the area were people moving to Tauranga from Auckland, who in general are looking for higher priced houses in higher price ranges for their new homes. So, the price of the average house is not necessarily still rising, but it looks more like there are just more houses at the higher end of the scale selling these days. It is believed that this trend will continue in the area.
The LVR, or loan-to-value ratio restrictions are now having less and less effect, and buyers who could not get a mortgage a short time ago, are returning to buy property after saving for a deposit to put down on a property.
Demand from Expats
Expats returning from living in Australia have also been big players in buying Tauranga property of late. Estate agents in the area feel that the supply and demand ratios in the area are almost optimum right now, with properties still coming onto the market, but most seeming to sell easily - which is a really good sign for the future of Tauranga's property market.
Tauranga property may be selling well on the high end of the scale, but a large buyer interest in entry-level price-bracket areas and in new subdivisions in the area is also a good sign, as all areas of the market are running well and showing buyers some good options. As the interest in these areas increases, this will bode well for Tauranga's property market across the board. There are also new options coming on the market in the form of land and build packages.
The Western Bay of Plenty also continues to show a stable market, where there is a lot of interest in properties along the coast in Waihi beach, and plenty of interest in properties in other regional towns in the area.