QV: First-time buyers return

First-home buyers seemed to be back in the market last month, data from Quotable Value shows.

Thursday, May 8th 2014, 12:00AM

by The Landlord

The latest monthly QV Residential Price Movement Index shows nationwide residential values are up 8.4% over the past year and 0.2% over the past three months.

QV’s national spokeswoman, Andrea Rush, said that after indications that values were turning downwards last month, they seemed to have picked up again.

“The nationwide index for April shows values accelerating at a similar rate to last year and Auckland values have also risen across all five main former territorial authority areas after a few months of slowing earlier this year.”

She said first-home buyer activity was up across the country.

“This would lead us to believe that the LVR changes have resulted in only small changes to the number of sales made to first-home buyers and could indicate that they are now finding alternative ways to finance property.”

Auckland prices are up 13.9% year-on-year and 1.5% over the past three months.

Values in Auckland City Central are showing the largest increase over the past three months, up 5% since February, while the North Shore - North Harbour region increased 3% and Rodney North was up 2.9% over the same period.

The average value of properties in Auckland City East is $1,043,098 and this part of Auckland is up 14.9% year on year and 30.7% since 2007. Values in Auckland City South increased 0.9% over the past three months, 13.9% since April last year and are 37.7% above the previous peak of 2007, which is a national high.

But QV valuer Bruce Wiggins indicated that some of the heat had come out of the market: “Values are still increasing but at a slower rate than last year and some properties are taking a little longer to sell.”

He said the number of sales was down compared to mid-to-late 2013 and there were price reduction stickers appearing in some areas. “This could show that sellers are needing to re-align their sale price expectations to the true market trends and the fact that market conditions are less competitive than they were prior to October last year when the LVR speed limits were introduced.”

Values in Hamilton City are up 0.9% in the past three months, 4.7% year on year and 0.6% above the previous peak of 2007. The Tauranga City market has increased 2.1% in the past three months and 4.8% year on year. But it is still 6.7% below the peak of 2007.

Values across the Wellington Region as a whole are up 0.6 % over the past three months, 2.8% year-on-year and are sitting 0.1% below the 2007 peak.

QV valuer Kerry Buckeridge said: “Buyers who have been in the market for property for some time are now knuckling down to make some decisions so that they have time to lock in a good interest rate before further rate rises. There is no lack of supply in most of Wellington and the excess of choice often leads to slower decision-making from potential buyers.”

Property values in Christchurch City have decreased 1% over the past three months, but are up 7.9% since April last year and are 19.1% higher than the peak of 2007.

Dunedin City values increased 0.3% over the past three months, 1.7% year-on-year and are 1.3% above the peak of 2007.

The majority of values in the provincial centres still remain below the previous peak of 2007, except in areas close to Auckland and Christchurch.

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