The housing market remains in the doldrums after rebounding earlier this year, but the rate of decline for property values appears to have stabilised, according to valuer QV.Many buyers would delay their decisions until next year despite an increase in th
The housing market remains in the doldrums after rebounding earlier this year, but the rate of decline for property values appears to have stabilised, according to valuer QV.
Many buyers would delay their decisions until next year despite an increase in the number of properties now on the market, although quality houses in established areas were selling quickly and for good prices, QV.co.nz research director Jonno Ingerson said.
"There continues to be a relatively low number of house sales, as has been the case for most of the year," Mr Ingerson said.
"Securing funding from the banks remains difficult for some potential buyers, while others are taking their time over purchase decisions."
The seasonal increase of properties on the market was largely adding to the stock of unsold property.
The market was still declining, in contrast with this time last year when values were steadily increasing from a low in early 2009.
QV's residential house price index was 0.3 percent above last November, but values were still 5.6 percent below the market peak of late 2007.
Auckland house values had been stable since the middle of the year, and were 1.8 percent higher than a year ago following a large increase between November and March.
Unlike other main centres, Wellington values had dropped since March and were 1.6 percent down on a year ago. However, they appeared to have begun stabilising in the last month.
House values in Hamilton and Tauranga were down 1.6 percent and 0.9 percent respectively, and in Dunedin were down 1.2 percent on a year ago after a gradual decline this year.
In Christchurch, the property market was beginning to recover after the September 4 earthquake, in which less than 5 percent of properties in Canterbury were badly damaged.
"Since the earthquake, there have been very few sales of houses in badly damaged areas, but properties with little or no damage are now beginning to attract good interest," Mr Ingerson said.
However, the sales process was still taking longer than usual. Disruption in the Canterbury market meant the QV residential price index was unable to measure changes after the earthquake, but early results showed values were bouncing back, he said.
Values were higher in Wanganui (up 1.3 percent on a year ago) and Nelson (up 1.9 percent), and little changed in Rotorua, Hastings, Napier, New Plymouth and Queenstown Lakes.
Values fell in Whangarei (down 2.1 percent), Gisborne (down 5.1 percent), Palmerston North (down 1.3 percent) and Invercargill (down 1.7 percent).
QV's index compares the prices of properties sold in the past three months with sales in the same period a year earlier.
The average sales price over the last three months fell to $397,805 from last month's $399,055.
