Property prices continue to stabilise, QV says

Residential property values remain relatively stable, latest data from QV shows.

According to QV indices, property values in April were 1.9 percent lower than a year earlier, and 5.8 percent below the market peak of late 2007. In March values were 5.9 percent below the peak.

The average sales price for the past three months was $405,301, up from $400,656 in the three months to March. QV views the average price as a less accurate indicator of value change than its indices.

QV.co.nz research director Jonno Ingerson said nationwide property values had been relatively stable for several months after falling slightly through most of 2010.

The levelling of nationwide values had at first been due to a flattening of values in Auckland. Now there were increasing signs of values stabilising in many other areas, Mr Ingerson said today.

A rise in sales activity in March and the first half of April appeared to have dropped away following the Easter and school holiday break.

It was typical for sales activity to slow from now through until spring.

"Market sentiment remains patchy with some areas lacking quality listings to satisfy buyer demand, while other areas have little buyer demand despite plenty of houses for sale," Mr Ingerson said.

"In general properties with desirable attributes, or those that represent good value, are still selling well."

In the Auckland area values had moved within a narrow band for most of the past 18 months, and were now 0.5 percent below the same time last year.

In recent months values had been slightly variable, but there was little evidence of values moving significantly up or down.

In Hamilton values were 3.5 percent below the same time last year, but in recent months values appeared to be flattening off, Mr Ingerson said.

Tauranga values were 1.7 percent below last year, and also appeared to be flattening in recent months.

Most of the Wellington area's 3.4 percent drop from a year earlier came in 2010, with values moving in a narrow band in the past six months.

Values in Dunedin were down 4.2 percent from a year earlier and continued to generally trend downward.

An index had not been generated for Christchurch, as there had been a significant slowdown is sales activity since the February earthquake.

Local valuers in Christchurch were seeing plenty of interest in quality properties in relatively unaffected areas, and prices had been generally holding, Mr Ingerson said.

"There is still a great deal of uncertainty in the market, particularly driven by concerns over job security."