Housing values remained flat overall in the three months to April, according to the latest figures from Quotable Value (QV).
According to the QV House Price Index, the average value of New Zealand homes increased by just 0.1% over the three months to April, to $914,504. This was down 1.33% compared to April last year.
That is particularly significant because the latest period includes figures for February and March, the busiest months of the year for the residential property market.
Six major urban districts recorded declines in values over the three months to April: Auckland Region -0.1%, Tauranga -0.2%, Palmerston North -0.7%, Wellington Region -0.5%, Queenstown-Lakes -0.4% and Dunedin -0.7%.
All other major urban districts recorded increases in average values. See the chart below for the full regional values and their quarterly changes.
QV said average home values were continuing to soften in Auckland, the country's largest housing market by far, where they were down 2.89%, year-on-year, compared to April last year.
"Lower home values and easing interest rates are creating a rare opportunity for first home buyers to enter the New Zealand housing market, particularly in hard to access main centres like Auckland and Wellington," QV said in its April Report.
"After five years of significant volatility, the market appears to have stabilised," QV Operations Manager James Wilson said.
"We're not seeing big swings anymore, home values are holding steady as we head into winter.
"Although interest rates are heading down, demand is tempered by cautious buyer sentiment and a large supply of properties," Wilson said.
"For first home buyers, particularly in parts of Auckland where stand alone homes are now selling in the $700,000s in some areas, something we didn't see a year ago, now is the time to act," he said.
4 Comments
Didn't they say the market had entered a growth mode last time they reported? Lol.
TAs latest, this reads like the credit team is in control...
Home buyers are newly cautious
Each month with sponsorship from mortgages.co.nz I survey mortgage advisors around New Zealand to gain their insights into what is happening with buyer activity and bank lending for dwelling purchases. Key results from this month's survey conducted this week include the following.
- Brokers are very frustrated with slow application processing by banks.
- There has been some easing off of activity levels recently with uncertainty about the international environment.
- Banks do not appear to be much competing for business by discounting mortgage rates at the moment.
Has the bubble in the Lakes area finally realised that there is a recession and a housing bubble. Have a mate down there trying to offload a new build and fixer upper (completed) and the market has moved from "take my money" to "I can get more elsewhere". Will need a quarter or two more to confirm.
very international mood driven, like Waiheke
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