House prices look to be levelling out: QV

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House price inflation is accelerated further in June, according to the latest Quotable Value figures.

Monday, July 11th 2005, 2:09AM

by Jenny Ruth

Annual average growth in house prices nationally in the year ended June was 14.2% to $306,200. That's up from the annual 13.5% rise in May, 12.5% in April and 12.1% in March.

"Despite thoughts that the property market is about to enter a slowdown period, we are still seeing increasing levels of growth in property values across most areas of the country, with only Nelson (down 1.3%) experiencing a decline in property values," says QV's Blue Hancock.

QV's figures are prepared on a three months rolling average basis.

Wellington and Auckland house prices grew at significantly lower rates than other cities, up 8.9% and 5.7% respectively, compared with a 23.6% annual increase in Hamilton, a 22.1% rise in Dunedin and an 18.5% rise in Christchurch.

Tasman, where prices had been declining in previous months, saw a turnaround with prices up 2.4% as did Queenstown where prices were up 8.9% in June after annual growth of less than 2% in previous months.

"Although property values remain buoyant, all the indicators are pointing to a levelling out of growth in values rather than a continued increase on the current level of growth we are seeing in the market", Hancock says.

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