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Average house values increased by 8.5 per cent in the year to August although values in many parts of the country are still below the previous market peak of 2007, according to Quotable Value.
Auckland and Christchurch were the only areas to record double digit value growth over the last year, with Hamilton, Wellington and Dunedin posting more modest gains and average values declining in a handful of mainly rural areas.
In Auckland the average value of a home is $652,129, up 13.1 per cent in the year to August.
In Hamilton the average value is $350,427, up 3.9 per cent, in Wellington the average value is $445,784, up 2.9 per cent and in Christchurch the average value is $436,251, up 11.4 per cent.
Within Auckland the increase in values was greatest in Waitakere, up 14.5 per cent, closely followed by the North Shore, up 14.3 per cent, while value gains were more modest in the region's outer limits with values in Rodney, Papakura and Franklin rising by between 8.1 and 9.8 per cent.
"Auckland and Canterbury are still driving the national increase in values, with the other main centres seeing limited growth," QV.co.nz research director Jonno Ingerson said.
"The provincial centres have tended to be more variable, although for much of the year many have been slowly increasing. In the last couple of months however values have flattened or even declined in many provincial areas. It is not yet clear if that is likely a to continue or was just a temporary slowdown," he said.
The figures also show that average values in many parts of the country are still below the peaks they reached in 2007, at the end of the last housing boom. These include Northland, Hamilton and Waikato, Taupo, Tauranga, Rotorua, Napier, Hastings, Palmerston North, Wellington, Marlborough, Queenstown, Dunedin and Invercargill.
Ingerson said the new Loan to Valuation Ratio limits that will restrict the availability of low deposit mortgages would "definitely limit" the number of first home buyers and investors in the market.
"However the rapid increase in values in Auckland and Canterbury in particular is also due to a lack of supply rather than just high demand from potential buyers. So while the LVR limits may have some dampening effect on values, we should still expect them to increase for some time yet," Ingerson said.
- © Fairfax NZ News
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