Real estate prices in provinces dip
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While Auckland property prices outperform the rest of the country, homeowners in the provinces are finding their properties are worth less on the market than a year ago.
Nationwide last month, houses were selling for 2.7 per cent more than a year earlier but many parts of the country had falls in house prices during the same period, according to Quotable Value figures.
QV research director Jonno Ingerson said prices in provincial areas had generally declined over the past three months, but there were variations within the trend.
‘‘Towards the end of 2011 values appeared to be increasing across most provincial centres in line with the main centres. However, in the last few months values have begun to drop again in Whangarei, Rotorua, Gisborne and Whanganui,’’ Ingerson said.
In Rotorua prices pulled back 3.4 per cent to $259,838. In Whanganui, property prices slipped 5.6 per cent to $205,490.
‘‘Nelson also differs from all the other provincial centres by being only 0.3 per cent below the previous market peak.
‘‘This is in contrast to 5.7 per cent below peak in New Plymouth through to 17 per cent below in Queenstown Lakes, 17.5 per cent below in Whangarei and 22.3 per cent in Gisborne.’’
New Plymouth prices had fallen 2.1 per cent to $318,137. Gisborne house values slipped 2.6 per cent to $249,638.
In January, prices in Auckland were 5 per cent higher than a year earlier and 1.9 per cent above the previous market peak in 2007. Ingerson said this was likely due to a shortage of desirable and well presented properties for sale.
In Wellington prices were up just 0.3 per cent from a year earlier at $500,063 on average.
QV valuer Kerry Buckeridge said that despite increased market activity, prices were generally static throughout Wellington.
‘‘Properties in the lower price brackets are meeting the greatest demand although it is still important for all sellers to present their properties well and to price them sensibly,’’ he said.
In Christchurch values rose, with properties in good condition after the earthquakes and aftershocks remaining in demand. On average prices were up 3.7 per cent from a year earlier to $377,040.
‘‘Areas like the northwest of Christchurch continue to benefit from good demand from purchasers. Open homes are busy and resulting in multiple offer situations.’’