Capital housing market slowing

Wellington’s property market is slowing, new QV data shows.

The research firm has released its June statistics, which show the rate of house-price rises in the capital has slowed from 5 per cent or 6 per cent a quarter to 2.4 per cent over the past three months. The average value is now $609,552. Prices are up 18 per cent, year-onyear.

‘‘First-home buyers remain active in the market, and wellpresented and well-located properties are still selling well and are generally achieving strong prices,’’ said registered valuer David Cornford.

‘‘However, properties with undesirable characteristics are taking longer to sell and buyers appear to be adopting a more cautious approach regarding their purchasing decisions and they are in less of a hurry compared to 12 months ago. New listings and overall listings are up compared to the same time last year and the number of days it’s taking properties to sell has also risen.

‘‘When you add to this the fact that sales volumes are lower compared to the same time last year and the rate of value growth has eased back, we can confirm we are now seeing an overall slowing in the market.’’

The Kapiti Coast District had the highest quarterly value growth, rising 5.3 per cent over the past three months; followed by the western suburbs, where values rose 4.3 per cent over the same period. Meanwhile, values dipped by 0.4 per cent in Porirua in the three months since April.

QV spokeswoman Andrea Rush said regional centres showed the strongest growth as buyers looked for more affordable options. Hastings had the biggest price jump in the year to June, at 21.6 per cent. It was followed by Rotorua at 20.2 per cent and Whangarei at 19.6 per cent. All three centres still have an average value of less than $500,000.

Nationwide, house values rose 1.2 per cent over the three months to June and 5.9 per cent year-onyear.

"First-home buyers remain active in the market and wellpresented and well located properties are still selling well and are generally achieving strong prices." Valuer David Cornford