The days when the value of people homes increased every year appear to be drawing to a close, with average property values starting to decline in many areas, according to the latest Quotable Value figures.
According to QV, the average value of all residential properties throughout the country declined for the third consecutive month in July.
However the size of the decrease was small, with the national average dropping $5,059 to $673,797 in July from $678,856 in April. It remains 5.1% above where it was in July last year.
That suggests the trend is for more of a flattening in values than a serious decline, however it also marks an absence of capital gains.
A return to 'normal' market conditions
It is a similar story in Auckland, where July's average property value of $1,050,778 was down 0.1% from three months earlier, with falling average values over the same period in Rodney -1.1%, North Shore -0.7%, Waitakere -0.1% and Franklin -0.8%.
Going against the trend were Central Auckland +0.5%, Manukau +0.2% and Papakura +0.2%.
However the average residential property value in Auckland is still up 0.5% compared to July last year.
QV's Auckland senior consultant James Steele said Auckland was experiencing a return to "normal" market conditions with values remaining stable under depressed levels of activity.
"With less demand, sellers are adjusting expectations and are more open to negotiation in order to get their property sold," Steele said.
"In general, this has limited the value growth seen over the previous period and kept prices stable with some softening occurring in properties that have issues or are poorly maintained."
In other centres changes in property values have been more mixed.
In Hamilton the average residential property value was $558,615 in July, up 0.8% compared to July and up 3.3% compared to a year earlier.
In Tauranga the average value was down 0.2% compared to April but up 1.7% compared to a year earlier.
"The rate of [value] growth has dropped compared to this time last year," QV Tauranga consultant Steven Dunn said.
"We're seeing prices moderate, as many buyers consolidate after a period of sustained growth."
Wellington & Christchurch
In the Wellington Region the average value was $651,725 in July, up 1.5% on three months ago and up 7.4% for the year, with rising values evident in all parts of the region.
"Overall, Wellington is currently seeing stable values and it's now a much more balanced market after several years of strong growth," QV Wellington senior consultant David Cornford said.
In Christchurch the average value was $495,692 in July, up 0.5% over the last three months, but up just 0.1% on a year earlier.
"The Christchurch market remains steady, with values remaining relatively flat or increasing slightly," QV Christchurch property consultant Hamish Collins said.
"Overall market activity is subdued, with listings down and prospective buyers, particularly investors, keeping pretty quiet due to modest value growth," he said.
Dunedin has had one of the hottest markets in the country over winter, with July's average value of $411,669 up 1.8% over the last three months and up 10.1% over the last year.
However QV Dunedin property consultant Tim Gibson said value growth in many parts of the city had dropped recently after a sustained period of growth.
|QV House Price Index July 2018|
|Territorial authority||Average current value||12 month change%||3 month change %|
|Total New Zealand Nationwide||673,797||5.1%||-0.7%|
|Auckland - Rodney||947,336||-0.2%||-1.1%|
|Rodney - Hibiscus Coast||926,604||-0.1%||-1.4%|
|Rodney - North||968,829||-0.3%||-0.9%|
|Auckland - North Shore||1,224,301||1.8%||-0.7%|
|North Shore - Coastal||1,399,765||1.4%||-1.3%|
|North Shore - Onewa||971,037||2.0%||0.0%|
|North Shore - North Harbour||1,209,171||2.4%||-0.4%|
|Auckland - Waitakere||824,055||0.6%||-0.1%|
|Auckland - City||1,238,979||0.3%||0.5%|
|Auckland City - Central||1,070,104||-1.2%||-1.5%|
|Auckland_City - East||1,570,660||1.6%||1.3%|
|Auckland City - South||1,104,286||-0.1%||1.2%|
|Auckland City - Islands||1,147,678||3.8%||0.5%|
|Auckland - Manukau||901,504||0.3%||0.2%|
|Manukau - East||1,152,975||-1.2%||0.0%|
|Manukau - Central||698,565||1.7%||0.1%|
|Manukau - North West||781,699||1.9%||0.4%|
|Auckland - Papakura||702,466||4.0%||0.2%|
|Auckland - Franklin||665,311||1.0%||-0.8%|
|Hamilton - North East||709,263||4.0%||1.3%|
|Hamilton - Central & North West||512,416||1.7%||-0.2%|
|Hamilton - South East||513,016||4.7%||1.9%|
|Hamilton - South West||488,901||1.6%||-0.8%|
|Central Hawkes Bay||324,646||13.4%||2.8%|
|Wellington - Central & South||773,346||6.9%||2.4%|
|Wellington - East||818,341||3.7%||0.6%|
|Wellington - North||703,964||9.4%||2.3%|
|Wellington - West||895,242||7.3%||1.4%|
|Christchurch - East||373,367||0.7%||1.1%|
|Christchurch - Hills||675,208||1.7%||1.9%|
|Christchurch - Central & North||584,471||0.0%||0.8%|
|Christchurch - Southwest||471,948||-0.6%||-0.7%|
|Christchurch - Banks Peninsula||513,447||0.7%||0.0%|
|Dunedin - Central & North||430,663||11.3%||2.8%|
|Dunedin - Peninsular & Coastal||377,858||12.1%||2.5%|
|Dunedin - South||390,097||10.6%||0.9%|
|Dunedin - Taieri||425,549||8.1%||1.4%|
|Main Urban Areas||784,958||4.2%||-1.3%|