Hawke's Bay housing market remains 'static'

Napier property prices held steady over the last year while Hastings values continued to slip, according to the latest indices from Quotable Value.

Napier property values declined .1 per cent while in Hastings they declined 1.6 per cent.

The average January sale price in Napier was $342,808 and in Hastings $310,657.

Nationally property prices decreased 1.5 per cent in 2010.

Bevan Pickett, manager of Quotable Value Hawke's Bay, said it was a buyer's market. "Sales activity remains relatively subdued as buyers remain cautious and often not willing to meet the high expectations that many vendors still have," he said. "There is an element of pressure in the market with some vendors being forced to sell if financially over-extended.

"At this stage the 2011 market is still relatively static with few clear trends developing. National and international economies are still struggling to recover from the recession and this is adding little optimism to the stagnant property market.

"Countering this, current interest rates are relatively low and providing some incentive for borrowers."

Napier values were 5.6 per cent below their market peak of December 2007 and Hastings values 8.3 per cent below their peak of April 2008. Nationally prices were 5.8 per cent below the market peak of late 2007.