House prices on Budget brink

Uncertainty over next week's Budget with its potential for tax increases for landlords is being blamed for a sluggish property market.

Quotable Value figures released today show property values are 6.1 per cent higher than they were at this time last year.

The national average sale price for the three months to April was $405,235 - down from $407,133 in March and $416,074 in February. Nationally, property values are 3.9 per cent below the market peak of late 2007.

QV Valuations spokeswoman Glenda Whitehead said sales in April had been slow, with fewer properties for sale on a "flat" and "patchy" market.

While this was expected because of Easter and school holidays, doubts around the May 20 Budget, as well as possible increases to interest rates, were holding house-buyers back.

"The property market remains relatively subdued as both buyers and sellers carefully consider their positions," Ms Whitehead said. "There is little urgency, and many people are waiting to see the exact nature of the changes in the Budget before deciding their next move.

To read the full NZ Herald article, click here

Posted: 10 May 2010

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