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Winter chill settles on market

Sellers should reign in their price expectations as the latest QV data makes it clear that property values are flatlining and the market is quiet.

Wednesday, July 4th 2018, 6:00AM

by Miriam Bell

It is well recorded that values in the main centres, and notably in Auckland, have been easing for some time.

But the latest QV House Price Index shows that nationwide values in June actually dropped by 0.3% over the past three months, leaving the average value at $675,680.

Nationwide values still turned in an annual increase of 4.6%, once adjusted for inflation. Yet the rate of annual growth is on the decline too: in May it was 5.8%, in April it was 6.4%.

At the same time, value growth in the main centres has also continued to either drop or flat-line.

Values in the Auckland Region were down by 0.2% over the past quarter and, once adjusted for inflation, they fell by 0.3% year-on-year. This left the region’s average value at $1,053,575 in June.

In the Wellington region, values were down by 0.8% over the past quarter – although, once adjusted for inflation, they were up by 4.8% year-on-year. This left the region’s average value at $639,112 in June.

In Christchurch, values were down by 0.3% year-on-year but up slightly by 0.1% over the past quarter, leaving the average value at $494,707.

QV general manager David Nagel says the data confirms that values are continuing to moderate or drop after a sustained period of growth leading into winter.

While this may be the case, they are observing challenges around seller expectations on sales prices, he says.

“After a sustained period of national value growth, sellers can sometimes have an inflated – even unrealistic - view of the value of their property. This is resulting in slower than usual average time to sell properties across some areas.”

The LVRs and new Government regulations have reduced investor demand and this has reduced competition, giving buyers more time to do their due diligence before purchasing, Nagel says.

“As a result, regions such as Auckland are seeing an increasing number of sales through negotiation as opposed to auction as vendors show more flexibility in order to sell their property in a less buoyant market.”

He adds that, despite the slowdown in activity, there is still plenty going on in markets around the country.

In Christchurch, infrastructure improvements appear to be contributing to an increase in demand for new builds in the CBD, for example.

Also, the growth of suburbs on the outskirts of the main cities continues, he says.

“With high values remaining in most of our cities, more affordable suburbs on the outskirts continue to appeal particularly to first home buyers. This is a common theme across Auckland, Tauranga and Wellington in particular.”

In the short term, Nagel says he doesn’t anticipate any significant changes to current market conditions. “That means values are likely to remain fairly constant or steadily grow across most of New Zealand throughout winter.”

« Auckland listings plummetSuperCity market down but not out »

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Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 ▼7.45 ▼7.09 ▼6.95
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - ▼6.85 ▼6.49 ▼6.35
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - ▼6.85 ▼6.49 ▼6.39
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 ▼7.45 ▼7.09 ▼6.99
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - ▼6.59 - -
Co-operative Bank - Owner Occ 8.40 ▼6.79 ▼6.49 ▼6.35
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 ▼7.29 ▼6.99 ▼6.85
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 ▼6.69 ▼6.35 ▼6.15
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.74 7.35 6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 ▼7.75 ▼7.39 ▼7.19
Kiwibank - Offset 8.50 - - -
Kiwibank Special - ▼6.85 ▼6.49 ▼6.39
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
SBS Bank 8.74 7.74 7.09 6.95
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 7.14 6.49 6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Lender Flt 1yr 2yr 3yr
Westpac 8.64 7.49 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 6.89 6.75 6.39
Median 8.64 7.14 6.82 6.44

Last updated: 19 July 2024 9:21am

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