Commentators expect further data on the housing market this week to confirm it is subdued.House prices fell in June with buyers remaining selective and cautious, QV Valuations said at the weekend.BNZ said in a report that Real Estate Institute data due on
Commentators expect further data on the housing market this week to confirm it is subdued.
House prices fell in June with buyers remaining selective and cautious, QV Valuations said at the weekend.
BNZ said in a report that Real Estate Institute data due on Wednesday will have similar themes and should show weakness in nationwide sales.
"So much for the May budget clearing up supposed uncertainty about taxation issues," BNZ said.
"Indeed, in the end, the budget's housing measures were much less draconian that feared."
BNZ said house prices were subdued because they werre still well above long-term fair value and the housing boom from around 2003 "still looks a bit nutty".
Earlier this month Westpac predicted house prices will fall 2 percent this year and 2 percent next year as interest rates rise. It said house prices were grossly over valued in 2007 and are now only slightly over valued.
QV Valuations said in its June monthly report that nationwide residential property values are 5.2 percent above the level of a year ago. That is down from the 5.6 percent increase reported in May, which was the first decline in the value change from a year earlier since March 2009.
Values in June were 4.3 percent below the market peak of late 2007, having been 4.1 percent lower in May and 3.9 percent lower in April.
Glenda Whitehead of QV Valuations said no evidence had shown up so far of May's budget having any dramatic impact on the property market.
Any impact was likely to take effect during the next 12 months as various tax changes were implemented, and would also depend on whether investors decided to sell as a result of the budget measures.
For now, sellers with unrealistic price expectations were being bypassed by purchasers.
"Buyers continue to be very cautious and selective in their purchasing decisions. Properties with perceived flaws such as structural problems, or poor maintenance, or perhaps at a greater distance from town, are proving harder to sell," Ms Whitehead said.
Distressed sales continued to have an impact, subduing price levels in areas where they were available and potentially cheaper than non-stressed sales.
Sales numbers were around 20 percent below the long term average, with a decline in activity typical for this time of the year as winter set in, she said.
