Property values still falling, but impact of big rate cuts emerge

New property value numbers released today show continued falls through December, but signs are starting to emerge that last year's huge interest rate cuts might be starting to make a difference.

New Zealand property values fell 7.4 per cent during 2008 - the first sustained drop since 1998, says a new report issued by QV Valuations.

The Real Estate Institute has also released house price figures today, that also showed house values falling in December.

"Property values held reasonably flat through the first three months of the year, but the decline kicked in through the autumn and winter months, during which time values dropped 6 per cent," said Quotable Value's Mark Dow.

"With the significant drops in interest rates over the past three months, there has been an increase in market activity and values appear to be flattening again."

Property values grew by 120 per cent between 2002 and 2007, said Dow. The last period of sustained growth happened between late 1992 and 1997 - when values went up by 54 per cent.

To read the full NZ Herald story click here

Posted: 15 Jan 2009

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