Property values in gradual decline

Property values have continued to decline gradually over the past few months as market sentiment remains cautious, according to the August report by QV.

Property values have dropped 1.1 since March this year, after rising 4.3 per cent in the previous seven months.

As a result, values are now 3.1 per cent above the same time last year, and 5 per cent lower than the market peak of late 2007.

However, the average sales price increased slightly from $407,191 to $409,700 but this is because relatively few lower value properties are selling.

QV valuation manager Glenda Whitehead said little buyer demand and a considerable backlog of unsold property on the market are causing values to gradually drop.

"Although the number of new properties being added to this pool appears to have slowed as potential vendors choose to wait until the market begins to show signs of recover.

"Those with properties currently on the market now accept that they will take longer to sell, although they are not dramatically dropping their asking prices."

To read the full NZ Herald article, click here

Posted: 8 Sep 2010

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