Steve Hart: City home prices drop

Papakura is the only Super City district where prices increased over the past three months - up a modest 0.3 per cent. Photo / 123RF

Auckland values have dropped in most parts of Auckland over the past three months according to Quotable Value.

Properties in Franklin are down 0.6 per cent; Waitakere City 0.9 per cent; North Shore 0.7 per cent; Auckland City 0.1 per cent and Manukau 0.3 per cent.

Papakura is the only Super City district where prices increased over the past three months - up a modest 0.3 per cent.

In a press release, QV Auckland senior consultant, James Steele says: "Sales volumes are down to very low levels as demand is halted by the ability for purchasers to finance property deals.

"The number of listings has also eased as there is little pressure at the moment for home owners to sell, as rents remain high and interest rates are low, and a number of vendors and purchasers are taking a 'wait and see' approach until after a new government is formed."

Steele says the Auckland market continues to flatten and a stalemate situation will exist until a "significant economic shock destabilises prices" putting pressure on home owners to sell, or lending restrictions are eased allowing built up demand and limited supply to send prices upwards again.

He says: "Across the region we are still seeing strong demand from first home buyers for entry level homes, with investors largely removed from these markets.

"First home buyers seem better positioned to secure a home with less competition from investors and fewer properties are going to auction."

The good news is that more properties are being listed with an asking price.

"This allows more time for buyers to complete due diligence and make conditional offers," says Steele.

"Well-presented homes in desirable suburbs are still in strong demand by movers.

However, there are issues with deals falling over due to trouble obtaining finance under retail banks' stricter lending criteria.

"Those vendors who are keen or under pressure to sell are having to be more accommodating and flexible with their terms and conditions."