According to the latest QV House Price Index, Rotorua values recorded a small year-on-year increase of 0.3%, which has left the average value at $271,414.
But they dropped by -1.6% over the last three months and, and since the last market peak in 2007, the Rotorua’s value have fallen by -7.6%.
QV’s Rotorua valuer Nicky Harris said that values were definitely still below the 2007 peak.
However, she was surprised by the three month figure and thought the average may have been skewed by a high number of sales at the lower end of the market.
In her view, Rotorua values are generally increasing - albeit slowly and sedately.
“Since the start of the year, we have seen an increase in sales volume and there is also a shortage of stock on the market, although this is partly seasonal.”
For this reason, she believes values are likely to continue their leisurely climb up.
The Rotorua market is also starting to see increased interest and activity from Auckland and other out of town investors.
Harris said this trend is noticeable - although not to the extent it is happening in Hamilton and Tauranga.
“Rental portfolios are increasing and they are not all made up of the standard investor property type. There’s some higher end properties in there as well.”
The latest data from the Real Estate Institute of New Zealand (REINZ) backs up Harris’s view.
It shows that Rotorua’s median price rose by 15% in June, as compared to May 2015, and by 20% year-on-year.
This left the city’s median price at $276,000.
The REINZ data also showed that Rotorua’s sales volumes have increased by 96%, when compared to June 2014.
Meanwhile, values are on the rise nationwide, according to the QV data.
They increased by 4.1% over the past three months and by 10.1% over the last year.
This was the fastest annual increase since 2007 and has left nationwide values at 27.4% above the 2007 market peak.
When adjusted for inflation, the rise in annual values comes in at 9.9%, leaving values 8.8% higher than in 2007.
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