Thursday, April 25, 2024

Values steady, sales volumes plummet

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The latest monthly QV House Price Index shows nationwide residential property values for June increased 8.1 per cent over the past year which is the slowest annual rate since March 2015.

Values rose by 1.2 per cent over the past three months and the nationwide average value is now $639,051 which is 54.2 per cent above the previous market peak of late 2007.

When adjusted for inflation the nationwide annual increase drops slightly to 5.9 per cent and values are now 28.8 per cent above the 2007 peak. Residential property values across the Auckland Region increased 7.2 per cent year on year which is the slowest annual rate of growth seen since September 2012.

Quarterly value growth has plateaued at 0.0 per cent over the past three months. The average value for the Auckland Region is now $1,045,059 and values are now on average 91.2 per cent higher than the previous peak of 2007.  When adjusted for inflation values rose 4.9 per cent over the past year and are 59.6 per cent above the 2007 peak.

QV national spokesperson Andrea Rush said, “Values in the Auckland market continue to hold steady with the average value across the region remaining at just over $1 million dollars.”

“However, sales volumes in the Super City have plummeted to 30.0 per cent lower than they were this time last year as high prices coupled with banks’ stricter lending criteria are making it increasingly difficult for anyone but cash buyers or those with higher levels of equity to buy property.”

“It has also become much more difficult for developers to gain finance to build new homes, which is now leading to a slow-down in building activity in the market.”

“The CoreLogic Buyer classification data shows the share of sales to all buyers requiring a mortgage has dropped and the share of sales to cash buyers remains steady.”

“Meanwhile, in the other main centres values are now rising again in Hamilton and Tauranga after decreasing earlier in the year.”

“A slow-down in value growth in the Wellington market is now more evident in the QV House Price Index data and Porirua a previous hot spot has seen values decrease over the past quarter.”

“The Christchurch market is flat, with some areas seeing a slight decrease in values over the past quarter, while values continue to rise in a relatively buoyant Dunedin market.”

“Values in regional centres such as the Kaipara District north of Auckland, the Hawkes Bay, Nelson and the Tasman District are now seeing stronger value growth than the main centres as buyers look to the regions in search of more affordable homes.”

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