House values in Hawke's Bay have dropped slightly as winter has a subduing effect on the housing market, according to valuation company Quotable Value.

The latest QV house price index, released today (Wednesday) shows Napier values rose 15.7 per cent year on year abut only 3 per cent over the past three months.

The average value in Napier was $512,519.

Hastings values - up 8.5 per cent year-on-year - actually fell 0.3 per cent over the past three months to an average value of $455,678.


Read more: New online property listings fall nationally by 9.9 per cent, and 16.3% in Hawke's Bay
Sixty-seven new Napier lots on the market in multi-million dollar build
Social housing provider Whatever It Takes Trust opens new homes in Napier - but still not enough to cater for homeless

Central Hawke's Bay also saw a year-on-year rise in value (up 13.7 per cent). However, over the past three months values had fallen by 2.5 per cent to an average of $319,700.

"We're seeing a continued slowdown in the rate of value growth and market activity, with fewer listings during the usual winter slowdown period," QV Hawke's Bay property consultant Nicola Waldon said.

"After a sustained period of growth, sellers - in some cases - are struggling to adjust their price expectations. We're seeing many properties being relisted with asking prices or specifying a minimum price offer. Our data supports this, with the average time taken to sell increasing compared to recent years.

"Despite this, with overall annual value growth and rents remaining relatively high, investors and developers still appear to be achieving good returns. We're still seeing keen interest from out-of-town buyers and from those looking to renovate existing properties with a view of achieving future capital gains."

Tremains managing director Simon Tremain agreed that winter did have an effect on the market but there were no major signs to worry about.

"There are a couple of signs in the market place that things are slowing up a little bit but you really have to look at it in contrast to the fact that it's winter and a lot of people don't like putting their house on the market."

Listings had fallen and rental properties were becoming easier to get, which were signs the market was cooling "a little bit" but there were no major issues.


"We have spring around the corner, we are still getting excellent prices and there are still lots of buyers in the market with new homes coming online. Unfortunately for buyers there are no real signs that the market is slowing."

Property Brokers regional manager Paul Whitaker said the market was patchy but "positively" so.

"Definitely there is still limited supply, so values are still strong. We're probably seeing more of the same, if a property is presented well it's selling well but as a whole, a property that sold two months ago is selling at the same price now."