Hawke's Bay is echoing national figures which show improved property values for the second month in a row.
QV Valuations figures made public today show Napier with a -8.9 per cent property value growth. In April the figure was -10.2 per cent.
Central Hawke's Bay showed a big shift from -15.8 per
cent in April to -11.4 per cent in May.
Hastings remained unchanged on -9.7 per cent.
Average sale prices of properties in Napier were tagged at $311,373.
Hastings was $295,508 and Central Hawke's Bay $203,375.
Figures were not available for the Wairoa region.
The national average property sale price for May was $371,555.
"The recent stabilisation in values indicates that the wider market is moving toward some form of equilibrium," QV Valuations spokeswoman Glenda Whitehead said.
"In many areas there continues to be strong interest in property with more potential purchasers attending open homes, and more competitive offers being presented."
She said much of the revitalisation of the residential market could be attributed to lower mortgage interest rates.
"Established investors are now back in the market along with first-home buyers and those looking to upgrade."
Tremains Real Estate principal Simon Tremain echoed Ms Whitehead's comments, writing in the latest issue of the Hawke's Bay Chamber of Commerce's newsletter, Chamber Pulse, that lower interest rates and "more realistic" buying and selling expectations had pushed the turnaround along.
"Our sales figures for April are up 100 per cent compared with April 2008 and on a par with April 2007," Mr Tremain said.
He said that although buyer interest was strong there was now a need for more property listings.
