Hawke's Bay cities see house prices fall

Napier and Hastings house prices fell 1.5 per cent in March, according to property valuation company Quotable Value's (QV) Residential Price Index.
This continued the decline in February of 0.5 per cent in Napier and 2.8 per cent in Hastings, compared to the same time last year.
The index was calculated using sales data from the three months leading up to the month reported.
It was not the same as the average sales price, which fluctuated in line with the mix of properties selling in upper or lower price brackets.
The average sales price for Napier in March was $339,187 and in Hastings $320,255.
Nationally the index recorded a drop in March of of 2 per cent compared to February's fall of 1.7 per cent. The national average sales price was $400,656 for March, down from the $411,712 for February.
None of the provincial centres had values above the same time last year. Manager of QV's Hastings branch, Bevan Pickett, said the Hawke's Bay residential property market remained relatively subdued, with values in Napier and Hastings showing little movement throughout 2010 and the beginning of 2011.
"While the number of properties on the market appears to have increased recently, sales activity continues to be at low levels as a cautionary tone remains," he said.
"This is even while interest rates are low and banks are loosening their lending conditions.
"It appears buyers are tentative, making careful and calculated decisions and generally have time to do so."