House prices set for slump

Thursday 2 December 2004

House prices are expected to slump as much as 9 per cent in the worst-hit areas next year, knocked back by rising interest rates and fewer migrants, according to a new report.

By The Landlord

The average price fall was expected to be about 4 per cent, according to a report issued yesterday by mortgage insurer PMI and Infometrics.

Wellington house prices may dip a little next year, but rise again in the following two years.

The report says Nelson and Marlborough were "first to the party" in the boom times and were one of the first to leave with 7.5 per cent falls in house prices likely next year.

Sales volumes there are already down 30 per cent on the same time two years ago.

After peaking at $286,000 in December 2003, median house prices are now fluctuating at between $248,500 and $275,000, the report says.

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