A new record house price is being recorded in the Bay of Plenty.

The Real Estate Institute of New Zealand says median prices in the Bay of Plenty increased 17.8 per cent year-on-year in September, reaching a new record high of $709,000.

Regional Director Neville Falconer says this is the first time the region has exceeded $700,000.

'Within the region, record median sales prices were reached in Rotorua District ($521,000), Tauranga City ($780,000), Western Bay of Plenty District ($755,000), and Whakatane District ($661,000).

'Vendor asking prices are down slightly -2.6 per cent month-on-month as expectations start to align closer to median sales prices.”
Neville says sales volumes were up 31.2 per cent for the region and for the Katikati/Waihi Beach ward, sales volumes were up 220 per cent, showing how interest levels in beach and lifestyle properties is continuing to increase.

Open home attendance has increased as interest levels remain high from first time buyers and investors looking to take advantage of the low interest rates.

Multi-offers remain common practice throughout the region, with back-up offers becoming more prevalent, says Neville.

'Normally in the months leading up to an election we would see a drop off in numbers, however, that doesn't seem to be the case in the Bay of Plenty as demand continues to outweigh supply.”

Key data points for the region include:

• 17.8 per cent increase in median house price in the region from $602,000 in Sep 2019 to a record high of $709,000 in Sep 2020.
• House sales increased by 31.2 per cent from 442 to 580 sales from Sep 2019 to Sep 2020 the highest number in Bay of Plenty for 42 months.
• The number of days to sell a house decreased by nearly a week (6 days) in the year from Sep 2019 to Sep 2020; 36 days this year, compared with 42 days in 2019.
• A new high on the REINZ House Price Index – with a level of 3140. This means the value of the region's house market has increased by more than 210 per cent since 2003.
• The region experienced a 3.5 per cent increase in the month-on-month value of the housing market.
• Record median house prices in Rotorua, Tauranga, Western Bay of Plenty, and Whakatane Districts at $521,000, $780,000, $755,000, $661,000 respectively.
• The top sale for the region was in Ohope, Whakatane District, at $3.65m.