Property market bounces back

This year may not be a great one to try to buy a house, new data suggests.

QV’s House Price Index for last month shows market momentum continuing, with average residential property values up 4.4 per cent year-on-year, to $714,747.

Auckland’s average value was up 1.7 per cent over the last quarter and 0.3 per cent compared to the year before, to $1.049 million.

In the Wellington region, values were up 5.7 per cent in the year to January 2020, now at an average $864,753. Christchurch prices were up 2.7 per cent to $510,575.

‘‘January is generally a quiet month in real estate with most of us spending time with friends and families,’’ said QV general manager David Nagel.

‘‘But while the volumes of transactions have been low, there’s still plenty of interest from potential buyers looking at the limited stock on offer. This steady demand from right across the spectrum of buyers, coupled with the shortage of listings, has meant values are continuing to rise.

‘‘New listings started to increase toward the end of January around most of the country, however overall listings are reported to be down on the same time last year, which suggests the current trend of steady price growth is likely to continue in the short term.’’

He said Dunedin still had the strongest price movement of the main centres. Values in the capital increased 8.4 per cent over the quarter and 20.8 per cent over the year. Hamilton was next, with 4.1 per cent quarterly growth.

Brad Olsen, an economist at Infometrics, said the data reinforced the view that housing was set to heat up again in 2020.

‘‘Low property stocks and low interest rates are increasing housing activity and prices. Houseprice inflation in key urban centres is either remaining at current levels or heading higher still,’’ he said.

‘‘The stage is now well and truly set for further house price gains across the country, even as a focus of the election is likely to be on housing, home ownership, and rental costs again.

‘‘These price rises come even as new statistics show house building is still growing. Rising house prices should support continued levels of building activity and solid consumer spending growth over the next year.’’

Auckland’s market resurgence was driven by fewer listings and good competition, QV senior consultant Rupert Yortt said.

‘‘With the market taking a bit of a break in January, the bulk of listings are just beginning to come on which may ease the pressure slightly although we expect the positive sentiment to remain for the foreseeable future.’’

Yortt said the Auckland rental market was also showing positive signs.