Four homes - $43,000 lost in four months

Four properties, four months and $43,000 lost.

That's how much the weakening property market has slashed house prices in a Sunday Star-Times valuation investigation.

We tracked four case-study houses in Auckland, Hamilton, Wellington and Christchurch, and asked Quotable Value to give us "before and after" estimates of their worth over a four-month period. The value of one property plummeted $22,000, while the best off lost just $5000 in the same period.

Quotable Value spokesman Mark Dow says the changing prices what the house would be most likely to get if it went on the market tomorrow emphasised the importance of buyers and sellers getting up-to-date information.

There is little relief in sight for homeowners wanting to sell, with values expected to keep falling nationwide.

Infometrics managing director Gareth Kiernan says house price falls "will gain momentum over the next year, and an average drop of at least 10% is on the cards".

He says it's unlikely the New Zealand housing market will escape the post-boom hangover which has seen house prices in the UK fall 13% in the past year and American house prices drop by 19% over two years.

Latest national figures from Quotable Value to the year ending July, show New Zealand house values have fallen by 2.2% a dramatic change from a year ago, when the property market was peaking and homeowners were enjoying 12.7% growth.

The four houses in the Star-Times case study reveal how quickly these market forces are impacting on price.

Starting in April this year, a QV valuer visited each of the houses, assessing their value based on recent comparable sales and taking into account features such as location, age and size. The three-bedroom, average-priced properties were then re-evaluated on August 22. All four dropped in value.

Auckland: From $365,000 in June to $355,000 to $360,000 in August a $5000-$10,000 drop over 12 weeks.

Hamilton: From $310,000 in late June to $288,000 in August down 7.1% or $22,000 over eight weeks.

Wellington: From $465,000 in April to $454,000 in August an $11,000 drop over 18 weeks.

Christchurch: From $300,000 in May to $295,000 in August a $5000 drop over 15 weeks.

The declining value of the three-bedroom, 1970s' brick home in Chedworth Park, Hamilton, reflected the local market where demand is relatively weak.

But the owners, who didn't want to be named, bought the home for $280,000 in June, suggesting they bought well in the prevailing market conditions.

In Wellington, the drop for the three-bedroom, weatherboard home in the Lower Hutt suburb of Waterloo was also in keeping with easing values in the Hutt down 6% since January. Owner Darren Walton, who bought the property in 2001 for $215,000, wasn't too worried as he had no intention to sell. "As long as it doesn't go under $215,000, I'm not doing too badly."

In Auckland's Henderson Heights, the 1994 brick veneer home also felt the impact of reduced demand in the area.

The Sydenham house in Christchurch which declined by the smallest amount, indicated that well priced and presented properties close to the city were almost holding their own.

Dow said none of the properties had dropped too drastically.

"On the whole properties have come back but not by horrendous amounts."

Real Estate Institute vice-president Mike Elford said the real estate market traditionally picked up in spring.