Property values stabilising

Timaru property values may be starting to stabilise, the latest sales statistics released by QV Valuation indicate.

The latest statistics show while nationally property values fell 9.2 per cent in the 12 months to the end of April, locally, property prices fell 5.2 per cent in the same time.

The Timaru figure is the same as last month, while nationwide the drop in value is slightly less than March when values had dropped 9.3 per cent in 12 months.

The average sale price in Timaru in April was $233,249.

There were insufficient sales in Waimate and Mackenzie for figures to be valid.

The marginal improvement reflected a stabilising of prices in recent months, according to QV Valuations spokesman Blue Hancock.

QV's statistics show that, nationwide, property values peaked in January 2008, with current values now 9.6 per cent below that peak.

The average sale price fell from $378,399 in March to $372,981 in April, reflecting more sales at the lower end of the market.

"The increased market activity in February and March has flowed to April, which has led to more sales than we would normally expect at this time of the year." Mr Hancock said.

QV's figures are based on the sales data entered into QV's system in the previous three months.

"There are clearly different dynamics across the property market, and people are carefully considering their options," Mr Hancock said.

"Lower interest rates and cheaper properties are leading first-home buyers and investors back into the market. Homeowners are also weighing up their situation, with some choosing to stay put and renovate, while others see great opportunities to upgrade, as the upper end of the market becomes more affordable.

"As a result of this increased activity we are starting to see a shortage of listings, particularly at the lower value end of the market," he said.

"Prices tend to be holding for mid value, well presented properties in good areas, whereas poorly presented properties and properties at the top end of the market are taking longer to sell and are struggling to hold their value," Mr Hancock said.

Property values in the main centres have begun to flatten over recent months. As a result the annual change in property values across the Auckland area has improved from a drop of 10.1 per cent in property values last month, to 9 per cent in April. The Wellington area has also improved to a drop on 12 months ago of 8.5 per cent, an 8.8 per cent decline in Hamilton, 9.6 per cent in Christchurch and 8 per cent in Dunedin. Tauranga is the only main centre to worsen, with the drop in property values in the last year now standing at 9.9 per cent.

Prices being paid for property in most provincial centres have been flat for the past few months leading to improvements in the year on year change in many areas.

Mr Hancock said the stabilisation of property values in many areas suggested the market could be bottoming out.

- © Fairfax NZ News