“The recent mortgage rate cuts, and likely another OCR cut, will stimulate the market.”
Velocity’s suburb statistics, which analyse suburbs with more than 20 sales in the past year, showed Tauriko had the highest average value in the Bay of Plenty, $1.793m.
This was followed by Mount Maunganui at $1.556m, Matua at $1.198m and Bethlehem with $1.101m.
Matua saw the highest three-month increase in suburb property value, a difference of 3%.
Shum said first-home buyers were still the leading buyer group in the region, but there was a hint of investor activity in recent months.
Wayne Shum, Valocity senior research analyst. Photo / Fiona Goodall
“However, it is too soon to tell if that is sustainable.”
EVES Real Estate Bay of Plenty manager Mark Leach said sales volume and inquiries had been “steady” in the past six months, but he had noticed a “sharp” upward trend in the past four weeks.
“We feel this is due to the looming deadline of Christmas and the end of the year, as buyers want to secure their new home by then.”
Leach told the Bay of Plenty Times first-home buyers were “extremely active” in the market.
“This is followed by the upgraders or aspirational buyers, and we are seeing a few more investors back out looking, a few buying, but they still aren’t making up massive numbers.”
He said first-home buyer activity was picking up in the $700,000 to $900,000 price point.
“Properties that are fully renovated and turn-key ready are attracting a lot of attention from buyers.”
EVES auction results from November 20 indicated houses between the $700,000 to $1m were selling well.
The first-home buyer segment stands out as the strongest buyer group in the Bay of Plenty. Photo / File
“Properties that are attracting strong interest aren’t lasting long on the market, and we are seeing an increase in pre-auction offers and brought forward auctions.”
Bower Real Estate managing director Anton Jones said the decrease in interest rates meant buyers were more active, and auction clearance rates and multi-offers were increasing.
“Which is a sign the market is starting to change.”
He said new builds were the “quietest” sector, entry-level homes were moving well and the kiwifruit sector was seeing some inquiries.
“All other areas/sectors with well-presented, realistically priced homes are generally getting reasonable interest.”
Bower director and head of sales Hayden Duncan (left) and managing director Anton Jones (right). Photo / Brydie Thompson
Ray White Tauranga salesperson Kim Watt said there had been a “noticeable” lift in open home numbers recently.
“Pricing across September to November shows the Bay of Plenty market trending upward gradually, but certainly in a better place than this time last year.”
She also said first-home buyers and investors remained the most active groups, particularly in the $650,000 to $850,000 range.
“With interest rates easing, buyer confidence has improved and entry-level homes are selling especially well, supported by the return of both first-home buyers and investors,” Leach said.
Bayleys Bay of Plenty residential sales and project manager Jon O’Connor said he had seen a clear lift in activity since late winter.
“Inquiry levels are up, open homes are busier, as in our auction room, and sales volumes across the Bay of Plenty have improved on last year.”
O’Connor said first-home buyers were driving most of the activity and were shopping in the mid $700,000s to mid $900,000s.
“First home buyers are back in force. They’re well prepared and very focused on value and low maintenance.”
He said prices were stable and “well-presented” homes were attracting stronger competition than a year ago.
“The forecast for price growth in 2026 is promising.”
Kaitlyn Morrell is a multimedia journalist for the Bay of Plenty Times and Rotorua Daily Post. She has lived in the region for several years and studied journalism at Massey University.