I’ve been keeping an eye on the Tauranga real estate market through discussions with various real estate agents, registered valuers and online articles…
Over the last few months all sources are reporting that the number of homes sold in Tauranga, Mount Maunganui and Papamoa over the last few months has increased significantly.
The majority of homes being sold are to Auckland buyers! These buyers have experienced significant growth in the value of their homes in the last few years, and are now either selling up in Auckland with enough cash to purchase a house down here and have change left over, or they are refinancing their mortgages to borrow against their new equity in their houses in Auckland and purchasing investment properties in Tauranga, Mount Maunganui and Papamoa.
This means that the locals looking for a new home, have got some competition coming in, and the competition are cashed up buyers.
Also there still a shortage of housing stock available, and with the recent surge in house sales, that stock has just gotten shorter.
Economics 101 time!
Increased demand for housing (people looking to buy a house) and decreased stock levels (housing shortage) will equal a lift in property valuations.
This means that for local buyers, you have more competition for the house you want to buy, and less housing stock for you to choose from.
So what can you do to make yourself competitive?
Simple, contact us to arrange for a pre-approval for mortgage finance!!
A house owner who has various offers on the table to purchase their house may look more favourably on the offer that has fewer pre-purchase conditions.
If you are an existing home owner with some equity in your property, and you are thinking about purchasing an investment property or refinancing your mortgage now is a good time to talk and discuss some opportunities and strategies.