Wairarapa property values climb

RISING: Carterton property values continue to lead Wairarapa.

Wairarapa property values are climbing, but the rate of growth slowed across the country last month, new figures reveal.

Carterton values led the way with a 4.4 per cent increase in the year to January to an average value of $258,810, followed by South Wairarapa which recorded a 4 per cent jump to $299,756 according to state valuer Quotable Value.

Masterton was slightly behind, with average values rising 3.8 per cent to $242,729. Across the region, values remain well down on the 2007 market peak.

Nationwide, values increased 9.6 per cent over the past 12 months to $467,499, and are up 12.8 per cent on the 2007 market peak.

Bayleys Masterton owner Mark Morison said sales across all companies had been down in Masterton for January.

It was difficult to tell why the market had slowed, but once next month's figures were released any trends would be easier to detect.

"It could be the time of the year that's brought it down a bit, and I think next month will be the telltale [of] how that's going to affect our trading year."

QV research director Jonno Ingerson said growth had slowed.

"The January index shows that nationwide values increased 0.3 per cent compared to December, while a month earlier the increase was 1.3 per cent. So while values are still increasing the rate of this increase has slowed considerably. This pattern of slowing value increases is evident across Auckland also. Most of the other main centres have also slowed considerably to the point where values were either flat or slightly decreased in the past month."

Although it was the first month values appeared to have slowed, the timing was aligned with the effects of the Reserve Bank mortgage lending restrictions, brought in last October.

"These 'speed limits' have reduced the number of first home buyers active in the market, but perhaps more importantly have led to increased caution amongst buyers."

The Reserve Bank is expected to start increasing interest rates from next month to cool the economy as inflation accelerates.