Press Release – QV Valuations
The latest monthly property value index shows that nationwide residential values increased further in March. Values are up 3.3% above the previous market peak of late 2007, with a 1.3% increase over the past three months and a 6.5% increase over the past year.
Values in the Wellington area have continued to steadily increase since November after being relatively steady for most of 2012. Values there are now 2.1% above this time last year.
QV Valuer Pieter Geill said “although busy, the market has been relatively unpredictable with houses that were expected to sell quickly sticking around for longer. Houses priced too high, or perceived as quirky or in need of renovation appear to be putting younger buyers off”.
“Houses around the $300,000 mark are selling quickly in the Hutt Valley, with many buyers tapping into the KiwiSaver first home deposit subsidy, which in the Hutt Valley is capped at house and land packages valued at $300,000.
“In Wellington City there has been good activity around properties in the $1-1.3 million bracket as well as entry level homes around $450,000. The apartment market is slow at present” said Pieter Geill.
Jonno Ingerson, QV.co.nz Research Director said “nationwide values are still increasing although there are signs that the rate of increase has slowed in the last month or two in Auckland, Hamilton, Christchurch and Dunedin. However it is still too early to tell if this is the start of a more widespread slowing of values”.
“The provincial centres remain variable with no universal trends evident either over the past three months or the past year” said Ingerson.
“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” said Ingerson.