Property market continues to slow: QV

There are “clear signs” that the property market is slowing, with feedback of fewer listings and buyers, resulting in fewer sales, says QV spokesperson Blue Hancock.

Monday, August 13th 2007, 12:00AM

by The Landlord

However, as the number of buyers is dropping along with the number of listings, downward pressure on prices isn’t yet significant, he says.

QV’s July residential property market statistics report a 12.7% growth in annual national property values and an average sale price of $381,298.

The main urban areas are showing signs of flattening prices with minimal difference in QV’s figures from last month, while some provincial cities continue to experience “strong growth,” says Hancock.

“We are reporting falls in some average sales prices, however changes in average or median sales prices can simply reflect more activity in the lower end of the market.”

“If the spring market doesn’t provide a surge, then we would expect to see annual growth in property values dropping back to single figures in coming months,” says Hancock.

Main urban areas commentary:
Auckland:
Property values in the Auckland region increased by 11.9% over the past year, up from 11.2% reported last month

“There is a feeling that the market is beginning to slow,” says QV’s Glenda Whitehead. “The latest QV statistics also report a drop in the average sale price in the region from $492,857 last month to $490,818.”

“Our valuers are reporting patchy market activity across the region. Activity levels, on the whole, appear lighter than experienced for a number of years. People are acting very cautiously with the time from listing to sale appearing to be stretching out.”

Hamilton:
Residential property values in Hamilton grew by 13.6% over the past year and the average sale price was $356,849.

QV’s Richard Allen says there are signs that the market in Hamilton is beginning to ease. “Expectations are that sales activity will decline as a result of increasing interest rates. However, the general feeling is that sale prices are likely to remain fairly static rather than decrease.”

Tauranga:
Tauranga property values grew by 6.5%, similar to last month’s 6.6%. The average sale price increased from $419,556 last month to $425,865 this month.
QV’s Christopher Boyd says that sales volumes and inquiry have dropped off “significantly” and the market is beginning to slow. “Real estate agents report a reasonable level of stock but reduced sales volumes with potential purchasers less inclined to make the final decision. There is an increasing number of conditional contracts to purchase property, which reflects more buyer caution and longer sale timeframes.”

Wellington:
Property values in the Wellington region grew by 16.3% over the past year and the average sale price was $438,406.

QV’s Max Meyers says, “The typical winter slowdown is expected to be reflected more in sales volumes than price”.

“Feedback from our valuers suggests that the slowdown in activity is most evident furthest away from the city centres in the areas such as Wainuiomata.”

Christchurch:
Christchurch’s residential property values increased by 13.4% over the past year – the same as reported last month. The average sale price was $356,969.

QV’s Mark Dow says sales volumes are down and this indicates caution in the market.

Dunedin:
Dunedin’s property values increased by 10.8% over the past year, down from 11.4 % last month. Over this period, the average sale price was $274,551

QV’s David Paterson says, “We are now seeing signs of a slowing market in Dunedin with easing growth rates. There is a noticeable shortage of listings on the market”.

« Sales volumes plummet to 2001 level – REINZ

House prices stand still while sales numbers fall »

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