Property values rise for third straight month

House values fell 5% in the 12 months ended July 31, compared to 7.1% decline in the period through June, according to QV Valuations. The average sale price rose to $382,758 last month from $378,535 in June.

"There are also signs that more vendors are putting their properties on the market - this is perhaps in response to the reports of shortages of listings, signs property values have stopped declining and increased buyer optimism," said spokeswoman Glenda Whitehead.

"Although activity has increased at the lower end of the market, values are increasing more in the middle value range of the market."

More people believe now is a good time to buy property, with price expectations returning to "neutral" in the latest ASB Housing Confidence survey out last week.