North Island housing values dropped in October with declines also creeping in to values in Nelson, Queenstown and Invercargill

Housing values posted a modest overall fall in October, according to the latest valuation data from Quotable Value (QV).

According to the QV House Price Index, the average value of New Zealand homes slipped to $890,508 in October from $892,580 in September, a modest decline of just $2072 for the month.

Around the country average values dropped in 10 regions and increased in nine in October.

Auckland and Wellington continue to post the biggest falls, with Auckland's average dwelling value dropping to $1,155,065 (-$4375) in October from $1,159,440 in September, while Wellington City's average value dropped to $868,540 (-$3634) from $872,174.

Heading in the opposite direction were average values in Christchurch, which rose $2142 to $807,417 in October from $$805,275 in September.

Although the value divide between the North and South Islands still exists, with South Island values generally holding up better than those in the north, there are signs of some weakness emerging South Island values as well.

In the North Island the only districts to post increases in average values between September and October were Northland, Hamilton, Hastings and Palmerston North, while in the South Island, most centres continued to post value gains.

However values declined in Nelson, Queenstown and Dunedin in October, suggesting the markets in the south may also be starting to show some weakness.

On an annual basis, New Zealand's average dwelling value declined by 1.3% in the 12 months to October this year, with the biggest decline occurring in Wellington City -5.0%, and the biggest annual increase occurring in Invercargill at 6.3%.

The table below shows the quarterly and annual movements in average dwelling values in the main urban centres.