House values dip in Wellington region

A lack of pressure in the Wellington region's housing market saw average house values dip slightly in the last three months.

But year-on-year they have risen 1.4 per cent, with the average Wellington house price now at $452,649.

And first-home buyers are increasingly turning to their parents to guarantee loans, with the price of many properties, and particularly the LVR requirement of a 20 per cent deposit, outside the range of young buyers.

QV's index for residential prices, released today, showed that nationally property values have risen 8 per cent over the year to June, compared to 8.2 per cent in the year to May.

Nationally, the average property value was $476,346, up 2.1 per cent over the past three months.

In the wider Wellington area, however, house values fell 0.4 per cent over the past three months.

Wellington valuer Kerry Buckeridge said there was no pressure in the market to drive values along and the average days to sell had risen to more than 40 days, which was high for the capital.

''People are being very careful and cautious with their property decisions,'' Buckeridge said.

One silver lining was a winter lull in listings, which was helping real estate agents sell some houses which had been on the market for a while, ''so that's positive''.

Buckeridge said there were not many good properties available for under $400,000 in Wellington city, which was beyond the means of many first-home buyers.

''We are seeing some first-home buyers finding ways around the [LVR] caps, for instance by getting parental guarantees.''

QV spokeswoman Andrea Rush said that while values were still going up, the picture was not consistent across the country.

However, values in Wellington and Dunedin were showing ''a downward trend this month, as are a number of other provincial centres''.

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The Dominion Post