Property values will continue to rise over the coming months, Quotable Value predicts, and Auckland's hot market may be prompting some buyers to make hasty decisions.
By Susan Edmunds
It has released its latest round of statistics, which show that national house prices are 7.1% up on last year, and 1.7% up over the last three months. Prices are now 5% higher than their previous peak.
QV research director Jonno Ingerson said values were increasing fastest in Auckland, followed by Christchurch. Other centres’ prices were increasing at a more modest rate, and were often affected by localised economic conditions.
But he said prices in the country’s biggest cities were showing no signs of cooling.
“Given that the current increase in values in Auckland and Christchurch is largely driven by strong demand and short supply, values are likely to continue to increase in the coming months.”
Auckland prices are now 12.7% up on last year.
QV operations manager Kerry Stewart said there was a growing sense of desperation among some Auckland buyers as they searched for properties at reasonable prices. “The speed with which people have to make an offer has seen some forego the usual due diligence, which leaves them exposed to potential risks associated with the property.”
He said even in Mt Roskill prices were reaching $1 million.
Tauranga’s prices are now 0.2% down on the same time last year, Hamilton’s are up 4.3%, Wellington’s are up 2.7%, Dunedin’s are up 4.2% and Christchurch’s prices are up 10%.
The provincial centres generally remain steady. It is mainly areas in the middle of the North Island, such as Taupo, that experienced decreases in values over the past three months.
Hawke’s Bay and Wairarapa are seeing most activity in the lower end of the market with buyers cautious and sellers realistic on regard to price expectations.
Whangarei and Gisborne, which have previously been declining, have continued to grow in recent months.