Wairarapa property values are up on last year despite the onset of Reserve Bank loan caps taking a toll on sales to first home buyers, says QV valuer Trent Bellingham.
The QV residential price index for last month shows South Wairarapa leading the pack in the district with property valuesup 4.9 per cent on last year, while remaining 10.5 per cent below the market peak of late 2007.
Values in Masterton are up 3.6 per cent on last year but have fallen 16.4 per cent from the market peak, and Carterton values increased slightly by 1.5 per cent last month compared to the same period last year but are down 6.3 per cent from the market peak.
The average current property value for February in South Wairarapa is $302,735, while Masterton last month posted an average current property value of $238,824. The average current property value in Carterton for the same period was $261,071.
Mr Bellingham said the rise in sale volume and value had been somewhat offset in the first home buyer market in Wairarapa by The Reserve Bank restrictions on low deposit home lending.
"Residential sales across the Wairarapa have shown a slight increase in both sales volume and value over the past few months, however LVR (loan to value ratio) restrictions has slowed the first home buyer market," Mr Bellingham said. "We expect to see further sales as we head into the popular sales period of autumn. Lifestyle and rural sales have been more limited and value levels in these markets are both stable as buyers remain cautious. Values across all areas are still below the 2007 market peak."
QV national spokesperson Andrea Rush said the impact of the LVR caps had been felt nationally as well, and that last month was "the very first sign that the steady upward trajectory on the New Zealand, Auckland and Christchurch values over the past couple of years is starting to level off. This is a clear indication the LVR caps are taking effect and they appear to have led to a reduction in the rate of value growth in the residential property market."
