Optimism is short-lived

People are already paying too much for homes in some suburbs, says property market analyst Kieran Trass of suburbwatch.co.nz.

Trass believes these buyers fear they will miss the trough of the market, but analysis shows a further deterioration in values in some suburbs is just around the corner, including Massey in Auckland, Wainuiomata in Wellington and Bromley in Christchurch.

"The people paying too much appear to be driven by the perception that the market has reached its lowest point," Trass says.

SuburbWatch shows some suburbs are in for a further 5 to 10 per cent fall in values this year. Some - including Mt Roskill in Auckland and Taita in Wellington - have already fallen by 16 per cent in the past year alone.

To read the full NZ Herald article click here

Posted: 17 May 2009

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