QV says average dwelling values are dropping in most parts of New Zealand with buyers wary

Homeowners had little to cheer about over the three months to October, with housing values declining in most parts of the country according to Quotable Value (QV).

Nationally, the average dwelling value fell 1.5% according to the QV House Price Index.

The biggest quarterly decline of 3.2% was in Gisborne, which was previously one of the country's hottest housing markets but now appears to be cooling.

Other cities with a quarterly decline of 3% or more were Whangarei and Wellington City, with both down 3.0%.

The Auckland Region and Rotorua weren't far behind with quarterly declines of 2.5%. The biggest decline within Auckland was in Auckland's central suburbs where the average value was down 3.1%%. 

The only centres to record average value gains over the three months to October were Tauranga up 0.1%, Queenstown up 3.1% and Invercargill up 0.5%.

Since the beginning of this year the national average dwelling value has declined 1.9%, with the biggest declines occurring in Taupo down 4.8%, Wellington City down 4.7%, Hastings down 4.1% Gisborne down 3.9%, Auckland down 3.7%, Whanganui down 3.5% and Whangarei down 3.5%.

QV national spokesperson Simon Petersen said the first month of spring had brought little evidence that a broad-based recovery was imminent.

"There's certainly no spring in the housing market's step," he said.

"Buyers remain wary, they've still got plenty of choice and there's very little sense of urgency given the wider economic and political context.

"Interest rates and the approaching election are giving people even more reason to take their time and negotiate hard and that continues to put downward pressure on home values in most parts of the country," Petersen said.

See the tables below for the full district figures with both quarterly and annual changes.