\u201cWhat\u2019s changing is the mix of housing selling.\u201d<\/p>\n
Six to 12 months ago, $1m to $1.5m lifestyle properties were \u201cvery difficult to sell\u201d, he said.<\/p>\n
People \u201cdidn\u2019t have the confidence to upgrade or to buy bigger homes\u201d.<\/p>\n
Now, higher-value properties were selling \u201cmore consistently and almost coming back to a normal market\u201d, he said.<\/p>\n
He believed there was \u201cgood reason to be optimistic\u201d in 2026.<\/p>\n
\u201cI think we\u2019re going to see quite a strong marketplace in the first half of the year with people settled and reasonably confident in making a move and with interest rates being quite static \u2026\u201d<\/p>\n
EVES Realty Eastern Bay of Plenty general manager Steve Lovegrove. Photo \/ Andrew Warner<\/p>\n
Lovegrove said there might be \u201ca little bit of a withholding as the uncertainty of the election comes closer\u201d.<\/p>\n
Once the question of who would form the next Government was resolved, however, people would have certainty and probably come back to the market next summer, he said.<\/p>\n
Harcourts Rotorua director Wayne Pamment said price growth was often reflective of asking price.<\/p>\n
\u201cI think all we\u2019re really seeing is less of your first-home-buyer type properties coming on to the market and often more of the higher-end properties.\u201d<\/p>\n
The latest QV House Price Index showed Rotorua recorded a 2.6% increase in the average house price for the three months to December. <\/p>\n
He believed the QV data reflected higher-end property vendors having more confidence in the market.<\/p>\n
Pamment said he did not see a \u201cprice lift\u201d in the market yet.<\/p>\n
Six months ago, the median house sale price was in the $400,000 to $500,000 range in Rotorua, he said.<\/p>\n
\u201cIt\u2019s creeping up into the mid-sixes now.\u201d<\/p>\n
That reflected more properties selling in the $850,000 and above range and \u201cdragging that median sale price up\u201d.<\/p>\n
Pamment said he had started seeing \u201cmore solid engagement\u201d from buyers since October.<\/p>\n
\u201cIf the property is presented reasonably well, the price expectations aren\u2019t through the roof, then we are getting buyers that are turning up and going, \u2018hey, this actually meets our needs and let\u2019s get on with it\u2019.\u201d<\/p>\n
The last quarter \u201cdefinitely had a bit more steam behind it than what we\u2019ve seen previously\u201d.<\/p>\n
Ray White Rotorua project and engagement manager Crispian Stewart said there was an increase in market activity to close off the last quarter with the number of sales, house prices and days on the market indicators \u201call trending positively\u201d.<\/p>\n
Seasonal factors alongside interest rates levelling out were contributors, while December had a \u201crush\u201d ahead of the holiday period.<\/p>\n
Stewart said an election year tended to briefly \u201cpause activity\u201d.<\/p>\n
\u201cGlobal activity will also have an influence. But in general, there is optimism that 2026 will see a steady positive increase in key market indicators as the year progresses.\u201d<\/p>\n
Wayne Shum, senior research analyst with property data platform Valocity, said interest rate cuts in the last quarter had helped drive price growth.<\/p>\n
Wayne Shum, senior research analyst with Valocity. Photo \/ Fiona Goodall<\/p>\n
December\u2019s relaxation of the loan-to-value ratio restrictions by the Reserve Bank had \u201chelped a lot of people get in the market as well\u201d.<\/p>\n
Shum said some long-term interest rates increased towards the end of December, which prompted people to think \u201cthis is the bottom of the rates cycle, let\u2019s get in now\u201d.<\/p>\n
In a statement, QV national spokesperson Andrea Rush said average residential property values across the country rose over the December quarter, following a prolonged period of flat or declining conditions through much of 2025.<\/p>\n
Nationally, residential property values rose by 1.1% over the quarter, with the national average now $910,118, down 13.1% from the January 2022 market peak.<\/p>\n
She said the latest data showed value increases becoming more widespread across the country, even though the pace of change remained modest in many areas.<\/p>\n
Rush said the number of homes for sale nationwide was at \u201cthe highest level in a decade\u201d.<\/p>\n
\u201cBuyers continue to have the upper hand, with more choice and the ability to negotiate.<\/p>\n
\u201cThis is keeping value movements in check, even as activity improves in some areas. That dynamic is also contributing to improved affordability in relative terms, particularly for first-home buyers, who remain active across many parts of the country.\u201d<\/p>\n