House prices down and expected to keep falling

QV says residential property prices nationally were 2.4% than a year ago, however this growth figure is down on the 4.9% growth reported in April.

It says the average sale price decreased slightly to $387,299.

“While most areas are still holding their value from a year ago, some areas are beginning to report small declines” QV Valuation’s Mark Dow says. “Whether properties are holding their value or being sold beneath previous expectations is being influenced by how much pressure the owner feels to sell. There are increasing reports that where sellers aren’t under financial pressure or needing to relocate, they are choosing to take their properties off the market or rent them out rather than accept lower offers.”

QV’s preliminary statistics, and feedback from its valuers, suggest that this decline is set to continue for some time yet, Dow says.