House values rise at slowest rate in two years - QV

Photo / Chris Gorman

House values throughout New Zealand rose 1.1 per cent in the past three months, the slowest rise in two years, according to QV data out today which cited low listings and LVR restrictions.

"The latest monthly QV Residential Price Movement Index shows that nationwide residential property values for October have increased 5.9% over the past year and 1.1% over the past three months which is the slowest rate since October 2012," QV said.

Andrea Rush, QV national spokesperson, cited a number of factors.

"Home loan approval rates have not increased, listings are also lower than normal for spring and sales are around 12% below what they were this time the last year. Banks are now offering competitive interest rates following a halt in any further hikes being signalled by the Reserve Bank.

However, the LVR restrictions mean banks are targeting well established customers rather than new lenders and recent research shows investors currently account for between 40 and 50% of all property sales in New Zealand," she said.

Auckland values up 2.5 per cent in the past three months and 9.2 per cent annually. QV valuer Bruce Wiggins noted a big rise in the number of auctions throughout the city, still suffering from a big listings shortage.

"It's reported that a much higher number of properties are selling at auctions than was the case during winter and QV valuers' work load has increased which is always a sign of increased activity in the market. However, there are not as many listings coming to the market as expected and stock levels remain low for this time of year. While the banks are offering competitive interest rate deals and additional items like TVs but these incentives are focused at those with more than a 20% deposit so are benefiting those with equity rather than those who own one home or are trying to get into their first home," he said.

Manukau Central values rose 4.1 per cent in the past three months, the highest rate since earlier in the year in the area where values are up 12.2 per cent and 26.2 per cent since 2007.

Auckland City East values were up 3.6 per cent in the past three months, 8 per cent annually and are now 37.1 per cent higher than in 2007.

Auckland City values were up 3 per cent in the three months, 7.7% year annually and 39.8 per cent since 2007, Waitakere City values rose 2.3 per cent, 9.9 per cent and 36.2 per cent, North Shore-North Harbour up 3 per cent, 10.2 per cent and 39.5 per cent.

Read QV's Residential Price Movement Index release here: