Property values begin to stabilise

This time last year values were steadily increasing from a low in early 2009. This increase continued until March 2010, when values began to steadily decline. As a result the gap between values this year and last year has closed further to 0.3%.

The rate of decline has slowed in recent months and values, at 5.6% below the market peak of late 2007, appear to be stabilising.

"There continues to be a relatively low number of house sales, as has been the case for most of the year. Securing funds from banks remains difficult for some potential buyers, while others are taking their time over purchase decisions," said QV research director Jonno Ingerson.

"Not all parts of the market remain slow moving however, with QV valuers in the main centres still seeing quality properties in established and traditional areas selling quickly for good prices. This is in contrast to the large number of properties that have now sat unsold for several months."