Homeowners across the Bay of Plenty can finally see the light at the end of the tunnel. At last, a number of reports are signalling that property values are on the rise again.

Most notable is this week's Infometrics report that house prices could increase by 24 per cent over the next three years.
Certainly, Tauranga and Mount Maunganui real estate agents have seen a lift in buyer demand so far this year. From April to June, Tauranga sales rose 22 per cent on the same time last year. The figures over the next few months should build on those results; many of us in the industry are experiencing a healthy level of buyer demand for properties which are priced correctly. Lower interest rates are driving demand, but so too is the shortage of housing stock. The shortage is a nationwide problem right now for real estate agents, with too few people willing to put their properties on the market. We do expect more properties to be listed for sale from September though, in line with the traditional springtime lift.
Encouraging noises are also coming from the BNZ's Tony Alexander. In his latest weekly overview, he cited another factor which will push up property values; the big drop in housing consents. The collapse of so many finance companies means a significant drop in funding for speculative housing developments. New housing consents have fallen from about 30,000 a year early this decade, to 14,175 in the year to June 2009. Not enough new houses are being built to satisfy impending demand.
And finally, sentiment is looking sunnier. In the three months to July, 54 per cent of people felt it was a good time to buy a house, according to the latest ASB survey. That's the strongest result in eight years – and yet another reason to feel confident as thoughts turn to beaches and barbecues in the Bay.