Property values up 3.9% over past year - QV

BUSINESSDESK: The pace of annual gains in the value of houses accelerated in May after relatively steady values over the past few months, government valuer Quotable Value says.

National property values are up 1% in the three months ended May 31 and have risen 3.9% over the past year, to be 2% below the market peak in 2007.

"Sales activity has remained relatively strong for the past couple of months, with no evidence yet of the usual decline in sales seen over winter," research director Jonno Ingerson said.

"The relatively low number of new listening and sales over the past few years are leading to an increase in pent-up demand.

"There are now buyers who have been looking for a house for some time and either cannot find something that meets their needs or are being out-bid by other keen buyers."

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

Mr Ingerson said Auckland's property market is now "leading the way".

Values in Auckland rose 1.4% in the three months ended May 31, compared to 0.6% in the three months up to April 30. Values are up 5.7% on an annual basis.

"Confidence is spreading out of the centre, with increasing values seen in pockets of the wider market," valuer Glenda Whitehead said.

"Much of the gains seen in the wider areas again appear to be driven by demand outstripping listening levels."

Wellington values, which had been steadily increasing since August last year, began to slide again. They fell 0.3% in the three-month period, with an average sale price of $507,090.

The average sale price in Christchurch was $379,501 over the three-month period, and values are up 5.4% over the past year.

Earlier today the Real Estate Institute released figures showing house prices and sales across the country rose in May on the continued strength of Auckland and Canterbury.

The number of sales rose 24% to 7175 in May compared to the same month a year ago, and was up from 5676 in April, the institute said.

The national median sale price rose 5.4% to $369,000, and was up $4000 from a month earlier.