Property price figures slowly rise
Property values in Palmerston North are still on the slow curve up, despite Reserve Bank lending changes.
Quotable Value figures for November, released today, show that the average house in Palmerston North is now worth $287,683.
This is a 0.6 per cent increase on three months ago and a 2.6 per cent increase on the same time last year.
Nationally, property values have increased 9.2 per cent over the past year, and 2.5 per cent over the past three months.
QV research director Jonno Ingerson said while there were signs of changes in the market as a result of loan-to-value ratio changes it had yet to come through in the statistics.
"There are reports of fewer potential buyers at open homes, longer marketing periods, and fewer auctions selling on the day."
"In the last three months there has been an increase in the number of completed sales to first home buyers."
The lending restrictions were brought in on October 1 and another few months was needed to gauge their effectiveness, Ingerson said.
"Christmas is usually a time of the year when property market activity slows down dramatically and people use the holiday period to reconsider their intentions.
"It should start to become clear by March which direction the market is heading."
Most of the provincial centres are still experiencing growth with Gisborne the fastest growing at 2.9 per cent over the past three months.
In the Manawatu district, property values have increased 3.8 per cent in the past 12 months but dropped 1.3 per cent in the three months to December. The average house is now valued at $237,219.
In Rangitikei, the average property increased in value by 2.1 per cent over the past three months and 2.6 per cent over the past year, to now be worth $148,392.
Tararua district property values experienced growth of 1.6 per cent in the past 12 months, but dropped 1.4 per cent in the past three months. The average house value in the region is now sitting at $153,221.
Horowhenua had a solid 1.7 per cent growth in property values over the past three months with the average house now worth $203,201.