The house price boom continues to slow, according to the latest residential property value survey.
Monday, April 11th 2005, 7:55AM
by The Landlord
Quotable Value statistics released today show average residential properties grew in value by about 12 per cent in the 12 months to March. The figure is 1.4 per cent down on the annual growth reported in February.
It comes after economists warned first-time home-buyers to stay out of the market as prices would fall.
But the Real Estate Institute said yesterday that the figures were a fluctuation rather than a trend.
Quotable Value put average growth in value at 13.5 per cent for February, but 12.1 per cent for January.
Blue Hancock, QV Valuations spokesman, said the figures showed a gradual slowdown. "The cooling of property values started in the major urban areas of New Zealand, and now has begun to extend into some of the provincial cities."
The survey shows several areas still had growth of more than 20 per cent over the year, including New Plymouth, Wanganui, Dunedin and Tauranga. But they are following the nationwide cooling, with Dunedin slowing by 5 per cent.
