Downturn slowly running out

The QV House Price Index for July shows the average home dropped in value by 1.5% nationally over the July quarter, which is a smaller rate of decline than the 1.8% in June, and considerably lower than the 3.5% and 3.4% quarterly declines in April and May respectively. The national average now sits at $888,999.

That figure is now 10.2% less than the same time last year, but just 0.3% lower than at the end of June. Nationwide four of the 16 main urban areas QV monitors had growth in the quarter – Hamilton (0.1%), New Plymouth (0.4%), Christchurch (0.8%), and Invercargill (0.8%).

Home values continue to fall in Auckland (-1.5%) and Wellington (-1.7%), with the average rate of decline increasing in Nelson (-2.4%), Whangarei (-1.4%), Queenstown (-1.3%), and Rotorua (-0.5%). The latter two had increases in last month’s index, reflecting the level of heightened volatility in the market.

QV operations manager James Wilson says it wouldn’t be unusual if home values continue to yo-yo across the country, mainly as a result of declining sales.