Agents dispute falling house values in Masterton and Carterton

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Average house values in Masterton and Carterton have fallen in the last three months, despite house values rising around the country at the fastest rate in over a decade.

Information released yesterday by Quotable Value showed Carterton and Masterton are the only North Island areas to see values decrease in the three months to June, with declines of 0.1 per cent and 0.8 per cent respectively.

South Wairarapa bucked that trend, showing a 2.1 per cent increase for the same period.

However, Wairarapa real estate agents dispute the figures, saying sales across the district are going strong.

Property Brokers Wairarapa regional manager Guy Mordaunt said it was possible the figures were skewed by an increase in lower-priced houses selling.

"With the surge in investors there may be more lower-end properties selling."

"If you'd asked me about house prices in Carterton and Masterton, I'd say they were through the roof."

Masterton house prices had been slow to gain but had lifted "incredibly dramatically" over the last year or so, he said.

Managing director of Harcourts Hamill Realty, Prue Hamill, said houses in both Carterton and Masterton were "absolutely" achieving good prices.

"I definitely think overall the prices have been on the increase and we've got good buyer activity out there."

Professionals Patrick and Scott principal Andy Scott said he was surprised by the QV figures.

"It's certainly going better and I think there has been a lift in the market."

It could be that difficulty in getting new listings was affecting prices, he said.

"In Carterton it may be a reflection of lower values there, because listings are so hard to get and things are selling really quick."

Overall average values for the last 12 months were up across the district, with Masterton increasing 1.2 per cent, Carterton 6.8 per cent and South Wairarapa 8 per cent.

QV valuer David Cornford said sales in the district were "pretty steady overall" and the recent dip could be a reflection of the small size of the area.

"These areas are quite small so there's not a great number of sales so the data can actually fluctuate.

"I think it's just winter - there's generally a slowdown in winter - and also the rural economy is quite slow at the moment and that can flow on too."

Prices were stronger in Carterton and South Wairarapa as both benefited from buyers from over the hill, he said.

"They definitely benefit from the Wellington buyers to a greater extent than Masterton. It's just that much further away and some buyers just don't consider it."

The average value in Masterton is now $246,070, with Carterton reaching $281,372 and South Wairarapa $328,463.

Home values in the Wellington region rose 5.1 per cent over the past three months and 12.4 per cent year-on-year.

The average value across the wider region is now $516,430.

Nationwide, residential property values for June increased 13.5 per cent over the past year.
The average value nationwide is now $590,909.

QV spokeswoman Andrea Rush said nationwide values were rising at the fastest rate since 2004.

"Many housing markets around the country are continuing to be driven by strong investor demand, low interest rates, rapid price growth in the Auckland market and strong net migration."