QV figures show house prices down 9.9% from peak

Quoteable Value's house price index showed house prices in New Zealand fell 9.9% in February from their (QV) peak in January 2008. The annualised fall in national house prices in February was 8.9%. QV said it expected sales volumes would remain relatively low for the rest of 2009, and that values would continue to ease back marginally. The QV index represents a three month rolling figure that compares sales with same or similar sales in the corresponding period a year before. In contrast, REINZ data shows the median house sale price each month, with January figures showing a 7.7% fall in the national median house price from its November 2007 peak. "There are definite signs of more activity in the market, with more listings, more genuine buyer interest, and more sales," QV spokesman Blue Hancock said. "However, January had the lowest number of house sales for many years, and with traditionally more activity in February higher sales volume are to be expected," Hancock said. "There is increasing sentiment that now is a good time to buy property, with investors returning to the market. However, there is still considerable caution amongst buyers, who are taking their time to research the market thoroughly. We are also starting to see a clear differentiation in the market. Quality properties in good locations are attracting much more interest than properties in poorer condition or in less desirable locations. The increase in activity also reflects vendors becoming more realistic about their property's current value," he said. "The current economic climate continues to impact the housing market, with job security a concern, and uncertainty over how the current global economic crisis will hit New Zealand. The renovation market remains mixed, with some home owners choosing to renovate rather than sell, while others are delaying planned renovations until economic conditions improve. Our expectations are that sales volumes will remain relatively low for the rest of this year, with values continuing to ease back marginally." Annualised prices in the Auckland are fell 9.4% in the three months to February, with prices in East Auckland down 11.4% from a year ago. Prices in the Wellington area fell 9.3% (in line with main urban areas) led by a 12.3% decline in Upper Hutt. In Christchurch, prices fell by 9.1%.