Property values slide in October

Property values continued their 'gradual decline' during October, and are now 5.5 per cent below the market peak of late 2007.

Quotable Value's (QV) latest property value index shows values have been falling since March.

QV research director Jonno Ingerson said sales were below both last year and the long-term average, and the traditional spring surge in sales had failed to eventuate.

"The average New Zealand sales price over the last three months has dropped to $399,055, from the $401,968 reported last month," the report said.

Ingerson said there was a general air of caution around the market and he doubted whether there would be any significant increase in sales before the New Year.

The number of properties coming onto the market was lower than usual for this time of year, and many of those that were on the market had been for some time, he said.

Some owners were choosing to stay rather than sell, some potential buyers were struggling to secure funding, and others were simply biding their time when buying a home, he said.

However, good quality properties in good areas were still attracting plenty of interest, and were selling for good prices, Ingerson said.

Across the country values were declining, although there was considerable variability within the regions, QV said.

The Auckland area showed signs of stabilisation during October with values now one per cent below March.

The average sales price for the Auckland region during October was $521,526.

QV spokesperson for the Auckland region, Glenda Whitehead said open home attendance and the level of buyers gaining pre-approval from banks had picked up in recent weeks.

In some areas this was beginning to convert into more sales, she said.

Values in Wellington have dropped 3.4 per cent since March, more than any other main centre.

Howver indications were that the market there may be starting to pick up pace, in line with better weather experienced in the capital.

"Our phones have certainly been busier over the past couple of weeks," QV spokesperson Pieter Geill said.

In Tauranga values are now 2.5 per cent below last year and in Hamilton values dropped 1.8 per cent during the same period.

The property market in Christchurch was slowly beginning to recover, with a pick up in sales seen in the less affected areas of the city.

Melanie Swallow of QV Valuations said the local economy was being stimulated by insurance and Earthquake Commission payouts.

"This has helped kick-start the property market as Canterbury puts itself back together and people move forward with their lives," she said.

Lower sales volumes and greater selling timeframes continued in the Dunedin property market, with values now just 0.9 per cent above the same time last year.

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Posted: 8 Nov 2010