The residential property market continued to slow in June, and values declined in many areas despite a tiny increase in the average sale price, the valuation firm QV says.
National property values rose 0.1 per cent in the June quarter compared with a year earlier, to an average
sale price of $392,436, well below growth of 2.4 per cent in May.
That followed a real estate institute report last week showing a 1.4 per cent fall in the national median house price to $340,000 for the month of June, and sales at a 16-year low.
QV said Auckland area values fell 1 per cent, led by a 2.4 per cent decline in Auckland City; Hamilton City values fell 2.5 per cent; Christchurch fell 0.2 per cent and Dunedin values declined 4.3 per cent. Wellington region rose 1.1 per cent, compared with 3.4 per cent in May.
"With market activity slowing dramatically, consumer confidence knocked by increasing interest rates, fuel and food prices, we expect the trend of falling property values to continue," said Glenda Whitehead, of QV Valuations.
"The traditional upsurge in activity in the spring market may reverse the mood of the winter market, however the issue of home affordability may dampen any resurgence in the market for a while to come."
Property values were now lower than a year earlier in many areas, despite an increase in average sale prices, she said.
Annual growth rates slowed in all main provincial centres, and declined in Gisborne (-3.2 per cent), New Plymouth (-3.8 per cent), Palmerston North (-1.5 per cent), Nelson (-0.1 per cent) and Queenstown Lakes (-1.6 per cent).
AT A GLANCE
* Auckland area: Minus 1 per cent.
* Auckland City: Minus 2.4 per cent.
* Hamilton City: Minus 2.5 per cent.
* Christchurch: Minus 0.2 per cent.
* Dunedin: Minus 4.3 per cent.
* Wellington: Plus 1.1 per cent.
- NZPA
