Prop­erty sales down

But data is var­ied

South Waikato News - - PROPERTY -

Res­i­den­tial prop­erty val­ues are 0.9 per cent be­low a year ago and 5.8 per cent be­low the mar­ket peak of 2007 in the De­cem­ber re­port of Quotable Value.

The prop­erty mar­ket con­tin­ued to de­cline in De­cem­ber but the lat­est sur­vey car­ried out by QV. co. nz sug­gested some con­sumer con­fi­dence might be re­turn­ing.

‘‘There are now more peo­ple who think that house prices will rise in 2011 than those who be­lieve they will fall,’’ said re­search di­rec­tor Jonno Inger­son.

The De­cem­ber re­port showed dif­fer­ences be­tween ru­ral and ur­ban ar­eas.

Val­ues of res­i­den­tial prop­er­ties across all ru­ral ar­eas stayed rel­a­tively flat through un­til May last year be­fore steadily drop­ping for the rest of the year.

By the end the year val­ues were 2.5 per cent be­low the same time the pre­vi­ous year.

In ma­jor ur­ban ar­eas val­ues rose through un­til April be­fore start­ing to de­cline.

The rate of de­cline slowed to­wards the end of the year, and val­ues ended the year 1.1 per cent be­low the same time last year. Val­ues in the Auck­land area ended the year 0.6 per cent above the same time last year, while val­ues in Welling­ton ended the year 2.2 per cent be­low the same time last year.

Val­ues rose in Auck­land be­tween Jan­uary and March then slid back un­til July, while Welling­ton re­gion val­ues in­creased about 1 per cent un­til April be­fore drop­ping un­til Oc­to­ber when they flat­tened, then rose slightly from Novem­ber to De­cem­ber.

Mr Inger­son ex­pected an over­sup­ply of prop­erty for sale to con­tinue for the first half of this year.

At some stage in 2012 or so the lack of build­ing ac­tiv­ity over the last cou­ple of years and a steadily in­creas­ing pop­u­la­tion was likely to in­crease de­mand for hous­ing, he said.

QV did not pub­lish up­dates for Christchurch, Sel­wyn or Waimakariri, cit­ing low vol­umes and a de­lay in sales af­ter the earth­quake on Septem­ber 4.

MIXED MES­SAGE: Quotable Value re­ports house prices are down but con­fi­dence is ris­ing.

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