Price growth slowing but no let-up in sight for first-home buyers: QV

The latest QV statistics show nationwide house prices are now 3.3% above their previous market peak and have increased 6.5% over the past year.

Research director Jonno Ingerson said nationwide values were increasing but there were signs that the rate of increase had slowed a bit in the main centres.

Auckland values are now up 11% on a year earlier. But Rodney and central Auckland are showing slower rates of growth in comparison to other areas.

“The number of properties on the market remains limited, particularly in Auckland. This has constrained the number of sales at a time when buyers have generally shown more confidence and have been keen to purchase,” Ingerson said.

Stewart said the slowing in price growth could because the market had hit the point where people were being priced out.

He said some buyers were waiting to see if houses became more affordable. “The market is getting to the stage where trying to get a first home is damn near impossible unless you have wealthy parents.”

He said prices would likely increase over the next 12 months – or at the very least level out. “I don’t see a decrease.”

Hamilton’s prices are 4.6% up on a year before, Tauranga’s are virtually flat, Dunedin’s prices are up 4.1% and Wellington’s are 2.1% up.

Wellington valuers had noticed the impact of KiwiSaver’s first home deposit subsidy, particularly in the Hutt Valley.

Christchurch values are 7.8% up on last year, although price increases appear to be slowing there, too.