Almost no house price growth: QV

It reports a 0.1% growth in national property values over the past year (calculated over the three months ending June 2008 in comparison to the same period last year), down on the 2.4% growth reported in May.
The only positive news is that the average sale price increased slightly to $392,436.

“Property values are clearly on the decline across most of New Zealand’s major cities and main urban areas,” QV Valuations Glenda Whitehead says. “The Wellington region; parts of the Auckland region; and some provincial areas are keeping the national figure positive, but at a meagre 0.1% growth.

“The long anticipated correction in the market, following the years of boom times, is with us,” Whitehead says.

“With market activity slowing dramatically, consumer confidence knocked by increasing interest rates, fuel and food prices, we expect the trend of falling property values to continue. The traditional upsurge in activity in the spring market may reverse the mood of the winter market, however the issue of home affordability may dampen any resurgence in the market for a while to come,” Whitehead says.