Auckland values remain stable

Consequently, values now sit 4.3% above the same time last year, but 2.6% below the market peak of late 20

Glenda Whitehead of QV Valuations says: "Activity within the Auckland residential market remains decidedly dull. Interest rates appear not to blame, and as this slow activity perseveres, perhaps we are beginning to see a fundamental change in attitude within the market.

"There is no doubt that with limited likelihood of capital gain in the short and maybe medium term, owners must see the costs of selling an existing property as a real factor. This cost of sale could be the cause of inflexible asking prices, while the likely lack of capital gain is holding down offer levels. Perhaps we have something of a stalemate, with the exception of more motivated vendors. We have also received reports of more vendors selling privately, thus reducing selling costs," Whitehead said.

"Also to note is the impact of the tax changes to the property market. It is still unclear whether these have slowed turnover, or changed the compositional mix of active market participants. Given there is much talk about debt reduction and would-be participants sitting on their hands, this may be a more influential factor than the tax changes themselves. Many of our clients are simply re-financing, confirming this focus on debt reduction," Whitehead said.