Residential property values continued their seemingly inexorable rise in November, figures released by valuation service QV show.
The average national price rose 9.2 per cent in the last year and 2.5 per cent over the last three months. House prices are now 11 per cent higher than the previous market peak of late 2007.
However, when adjusted for inflation, average national values remain 4.3 per cent below the 2007 peak.
QV research director Jonno Ingerson said yesterday that although the impact of recent LVR (low-deposit mortgage) changes was yet to come through in QV statistics, anecdotal evidence existed of change in the market.
"There are reports of fewer potential buyers at open homes, longer marketing periods, and fewer auctions selling on the day," Ingerson said.
In the South Island, prices rose in nearly all regions over the last three months.
One exception was Queenstown Lakes where prices dropped 0.8 per cent. Southland and Gore saw some of the largest price increases, with 4.4 per cent and 3.9 per cent three-month rises respectively. Prices in Auckland increased 15.2 per cent over the year and were 25.4 per cent above the previous peak.
QV valuer Bruce Wiggins said that although there had not been any distinct impact of the LVR changes in the Auckland market, open home numbers were decreasing and more sales were being made by negotiation rather than auction. "Investors are also in the market, however they are only progressing on properties where they see good returns," he said.
In the Wellington area, values have been flat with only a 3 per cent increase in prices over the year. Prices in Lower Hutt, Upper Hutt and Porirua continue to fluctuate. All these areas have seen a 0.2 per cent decline over the last three months, compared with a 2-3 per cent rise over the year. In Wellington city, prices rose by 1.8 per cent over three months.
Wellington QV valuer Pieter Geill said: "Both the Wellington and Hutt Valley markets remain pretty flat, with buyers seemingly taking a lot of caution."
Values continued to rise in Christchurch, up 12.4 per cent on 2012 and 3.2 per cent in the last three months. But variations occurred in suburbs. In Banks Peninsula average prices fell by 1.1 per cent over three months, but all other suburbs increased with the central and northern areas of the city seeing the biggest increase of 3.6 per cent.
QV valuer Daryl Taggart said: "The market remains active but the LVR changes have removed some of the hype, and this is best seen in the activity at auctions.
Values in Hamilton have grown 5.5 per cent in the year Fairfax NZ
- Taranaki Daily News
How has winter been for you so far?Related story: Snow brings travel warnings