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House prices gain 3.1% in a year, confidence rises - QV

BUSINESSDESK: The pace of annual gains in the value of houses crept higher in April amid strong recent sales activity. 

National property values were 3.1% higher than a year ago at April 30, up from 3% at the end of March, and are now 2.9% off the market peak in 2007, government valuer Quotable Value said.

Values rose 0.4% over a rolling three-month period, down from 0.5% in the three months ended March 31.

"Some of the increase in activity has been due to an increase in confidence amongst home buyers, releasing some of the pent-up demand caused by several years of lower than usual sales activity," QV valuer Glenda Whitehead said.

"Sales activity will slow down a little over winter, but the increased confidence in the property market is likely to carry through into spring."

New Zealand's property market has been on the rise this year after stalling through 2011, when potential buyers shied away from taking on too much debt and sellers were unwilling to accept cheaper prices.

Ms Whitehead said Auckland's property market is mixed, with a buyer's financial position a "key driver for whether prices in suburbs are rising or remaining stable".

Auckland values rose 0.6% in the three months ended April 30, with an average sale price of $523,518. Values are up 5% on an annual basis.

In Wellington, they fell 0.6%, with an average price of $443,070. Values rose 0.6% over the year.

The average sale price in Christchurch was $382,907, with values up 4.8% on the year.

Dunedin property values fell 1% in the quarter at an average sale price at $265,099. Values have gained an annual 2.7%.
 

Comments and questions
5

Economists seem to think that the more borrowed money that is ploughed into existing houses and pushing up prices, the better the economy will be.
This money would do the country more good if it went into productive enterprises, creating real wealth and jobs.
Despite what Bollard says, the housing market is booming in Auckland, pushing up prices.
I have been looking for a house, but there are always other people prepared to pay almost anything to get them.

This against the backdrop of the housing collapse in the States; the pending property collapse in Spain; decades of recovery in Japan after their property bubble burst. I guess Kiwis think it is different here, huh? Aus is next and then NZ. Housing is TOO expensive here.

May be in Auckland theres a gain, but the rest of the country is flat or stagnating, going no where.

It will be interesting to see what happens when those with rental properties file their 2012 tax returns and discover that instead of a refund, they have tax to pay this year for the first time (due to their reduced depreciation claim).

Two stories today from the BusinessDesk about property, and they seem to say opposite things. One says April was up, another says it was down. Is that what you call balanced reporting?
I question anything that QV says, it seems to be a promoter of increased property prices.