by The Landlord
Nationwide property values have increased just 0.1% over the past three months.
The latest 8.8% annual rate of price growth compares with 9.3% in February, 9.6% in January and 10% in December.
Adjusted for inflation, values are up 7% over the past year and are now 2.8% off their 2007 peak.
Spokeswoman Andrea Rush said the LVR rules and the Reserve Bank’s clear messages about interest rate hikes were likely both factors in the recent plateau in price growth.
“For the first time in more than two years, we are seeing a decrease in some areas of the market.”
She said first-home buyer activity was well down from what it was before the limits were introduced in October.
The rate of growth in property values across the Auckland region has slowed considerably.
Values have increased 0.9% in the past three months and 0.3% since February. Auckland City's average current value is $826,721.
South Auckland is down 0.5% but values there are up 13.8% year-on-year and are up 36% on their previous peak, a national high. The average current value is $732,046.
Manukau East is also down by 0.6% but up 13.7% year-on-year and 28.7% since 2007, to $766,956.
Valuer Bruce Wiggins said there was strong demand in Auckland for sub-divisable land.
Hamilton City’s increases have slowed to 0.4% over the past three months, to an average $361,522, and Wellington 0.7% to $539,133.
Christchurch prices have also cooled, down 1.5% over the past three months but up 8.3% year-on-year to an average $448,219.
Valuer Daryl Taggart said: “The LVR changes may have forced first home buyers to wait and save a larger deposit or look elsewhere for finance, but, first home buyers are still active in Christchurch buying houses and seeking valuations.”
The provinces are still mixed – Whangarei is up 1.2% in the past three months, Kaipara is up 0.7% and Otorohanga is down 13%.
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