Winter chill hits housing market as values decline
A ‘‘subdued’’ winter property market has seen a sustained dip in house values in Nelson city.
However, values in Tasman district continued to grow, according to the latest data from Quotable Value.
Residential property values in Nelson rose 5.9 per cent in the year to June, but dropped 0.5 per cent over the last quarter, with the average home now worth $563,287, the QV House Price Index showed.
This followed a 1.3 per cent drop in the city in the three months to May.
In Tasman, values continued to rise to an average of $574,000, a increase of 7.3 per cent over the last year, and 2 per cent over the past three months.
Across New Zealand, values rose 5.7 per cent over the past year, but dropped 0.3 per cent over the quarter, to an average value of $675,680.
The number of homes on the market in Nelson dropped over the last three months, and it was taking slightly longer to sell properties, QV Nelson property consultant Craig Russell said.
‘‘That’s not unusual during the winter period. I would anticipate that inventory will increase over the coming months, with values continuing to stabilise.’’
Lifestyle properties and properties of less than two hectares continued to ‘‘sell
‘‘Entry-level properties . . . continue to attract plenty of demand, particularly from first home buyers.’’ Craig Russell, QV
well’’, with stand-alone properties in Stoke and Richmond continuing to attract ‘‘plenty of interest’’, particularly from families, he said.
‘‘Entry-level properties valued up to $500,000 continue to attract plenty of demand, particularly from first home buyers.
‘‘Multiple offer situations are now not as prevalent as they have been, but contract prices still remain firm.’’
When adjusted for inflation, the national annual increase in residential property values fell slightly to 4.6 per cent.
‘‘The data very much confirms what we’re seeing, with values continuing to moderate or drop after a sustained period of growth leading into winter,’’ QV general manager David Nagel said.
The Reserve Bank’s loan-to-value ratio (LVR) restrictions as well as new Government regulations had reduced investor demand, Nagel said. This had had the effect of reducing competition, giving buyers more time to do their due diligence before purchasing.