QV: Price rise slowdown continues

It has released its latest Residential Price Movement Index, which shows that nationwide, prices have increased 6.9% over the past year and 1.7% over the past three months.

That is a drop from a 10% year-on-year increase reported in December.

The Auckland market is up 11.4% year-on-year and up by a third since 2007.

Spokeswoman Andrea Rush said: “Home values in Auckland, Christchurch and Tauranga are still increasing but at a slower rate than this time last year. Hamilton and Dunedin home values have decreased slightly and Wellington values are continuing to show the downward trend seen over the past few months. Sales volumes and home loan approvals are down year-on-year and interest rate rises, LVR restrictions and the upcoming election appear to be keeping the number of homes on the market low as well.”

In Auckland, the islands saw the greatest value increase over the past three months, followed by the Rodney/Hibiscus Coast area.

Valuer Bruce Wiggins said: “Winter has seen a continued reduction in transactions and listings are low across the Super City region. The upcoming election may also be a factor in the market being quiet as well as people wait to see the election result before making a decision. Good properties are still attracting good money but if there are any issues with a property then it is likely to take longer to sell.”

He said new builds were selling well, for good prices. “As there are no LVR restrictions on lending for new builds this may account for the stronger interest in this sector.”

Residential property values in Hamilton City have decreased slightly by 0.2% over the past three months, however they are 3.7% higher than in August last year.

Values in Tauranga City have increased by 0.8% over the past three months and 5.1% year-on-year.

In Wellington, prices are down slightly over the past three months.

Valuer Kerry Buckeridge said:  “Seven years is a long time not to see any value growth and a key factor is that Wellington does not have population growth to drive demand for homes. Currently there are historically low levels of stock in the market and low interest from buyers. The upcoming election is likely to be a factor and could mean people are holding off making property decisions…. A full ‘doer-upper’ can still appeal to seasoned renovators, but some first home buyers seem more likely to purchase a fully-finished apartment, than a standalone home that is in need of some work.”

Residential property values in Christchurch City have increased 1.1% over the past three months and they are 5.9% higher than in August last year.

QV valuer Daryl Taggart said: “The market is quiet but steady with relatively low activity at the moment - this may be related to the winter seasonal slowdown but we are no longer seeing multi-offer scenarios or buyers paying over the odds in the current market. There is still plenty of construction going on but no longer the same high level of demand as we have seen in recent times.”