Property values mostly flat, says QV

According to the latest Real Estate Institute of New Zealand data, the average Wairarapa house price in May this year was $256,000.

Wairarapa property values have had a flat year, with modest increases in Carterton and South Wairarapa and a slight slump in Masterton, new figures reveal.

South Wairarapa values experienced the biggest rise of 3 per cent, reaching an average of $300,003, while Carterton values rose 2.1 per cent to $258,522, according to state valuer Quotable Value.

Masterton property values slid 0.5 per cent in the 12-month period to an average value of $236,152, more than 17 per cent lower than the 2007 market peak.

Nationally, property values increased 8 per cent in the year to June to $476,346, up 15 per cent on the 2007 peak.

According to the latest Real Estate Institute of New Zealand data, the average Wairarapa house price in May this year was $256,000.

Andy Scott, principal of Professionals Patrick & Scott in Masterton, said sales volumes had "hit the wall" in the past few months.

"It was going quite [well] until November [or] December and then it just hit the wall."

The Reserve Bank'sloan-to-value-ratio home loan restrictions played a role in this, he said.

The higher end had enjoyed a slight resurgence with the sale of some more expensive properties, but "nothing to write home about".

"It's really flat in activity. There's a shortage of listings and a shortage of buyers."

Things would hopefully improve once summer arrived, Mr Scott said.

"We really need it to pick up."

QV national spokeswoman Andrea Rush said while the national value was still on the rise, the picture around the country was mixed.

"Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were in June last year," she said.

"Values in Wellington and Dunedin are showing a downward trend this month, as are a number of other provincial centres around the country."

Sales volumes and home loan approvals were also down "considerably" - about 15 to 20 per cent lower than the same time last year.

The Reserve Bank last month [12/6] raised its official cash rate by 25 basis points to 3.25 per cent and is expected to keep raising rates, with economists predicting another increase to 3.5 per cent on July 24.
APNZ