Home handyman bargains selling in Wellington

QV's Residential Price Index for August shows that property values in the Wellington region have continued to decrease, by 2.2% since March this year. In contrast, values increased by 4.4% in the seven months to March.

Consequently, values now sit 2% above the same time last year, but 5.4% below the market peak of early 2008 as the graph below illustrates:

QV Valuations valuer Kerry Buckeridge of QV Valuations said; "The residential property marketing in Wellington is currently characterised by softening values and relatively modest sales volumes. This is a continuation of the general trend established over the last few months".

"Many agents continue to find it difficult to get sales across the line, as buyers are thin on the ground and being very cautious. Exceptions appear to be home-handyman bargains at the bottom of the market, as well as very good quality properties at the top of the market," Buckeridge said.

"At the top end there have been some good sales.  These properties are very well located and of good quality. It appears as though buyers in this segment recognise that properties of this quality do not come to market too often. If they want this type of property, they are acting."

"In more buoyant times, activity is often generated by people upgrading to higher quality homes.  At present, we get the impression that most people are consolidating and paying down existing debt rather than trading up.  In Wellington, this conservative financial stance may be driven by the ongoing cost-cutting and restructuring within the public service sector. Even if there has been no direct effect on individual circumstances, many are playing it safe and battening-down the hatches."

"We are however just starting to see the early stages of the traditional spring market, with an increase in listings coming to market.  This phenomenon tends to occur every year as the weather begins to improve and we don't consider this activity to be the beginning of any sustained recovery," Buckeridge said.

QV's Residential Price Index is calculated using sales data from the 3 months leading up to the month being reported. It is not the same as the average sales price, which fluctuates inline with the mix of properties selling in upper or lower price brackets. The average sales price for the Wellington region in July was $455,144.