'Green shoots of growth remain scarce' in housing market, QV says

Average residential property values continued to decline in September in spite of the arrival of spring, according to the latest figures from Quotable Value (QV)

According the QV House Price Index, the average value of New Zealand dwellings was $901,920 in September, down from $905,357 in August.

That's a decline of $3437 for the month, which means average property values were declining by the equivalent of almost $800 a week last month.

In the September quarter average values were down -1.6% nationally, with the biggest decline of -4.2% occurring in Napier.

In other main urban districts, Auckland's average value was down -1.7% for the quarter, Hamilton was down -1.2%, along with Tauranga -2.1%, Wellington -3,2% and Christchurch -0.8%.

The only major urban districts to post gains in average dwelling values in Q3 were Nelson City 0.6%, Queenstown-Lakes 1.0% and Invercargill 0.2% - see the table below for the full regional figures.

"Spring has sprung but green shoots of growth remain elusive," QV's latest housing value report said.

However, the rate at which values are declining has slowed, from -2.0% in the three months to August to -1.6% for the three months to September.

The rate of value decline also slowed in most main urban regions.

"There seems to be a spreading expectation that interest rates can only go one way, and so we're seeing more people at open homes, in auction rooms and browsing for property online," QV operations manager James Wilson said.

"And so it certainly seems like a general uplift in property values is now on the horizon.

"But despite growing confidence that we're through the worst of it, the conditions aren't yet conducive to growth," Wilson said.

"The cost of borrowing still remains relatively high, the cost of living is restrictive and there are significant worries about job security, especially in Wellington.

High levels of stock on the market were also having a dampening effect on prices, Wilson said.

"Generally speaking, those who are in a position to purchase still have a raft of different options to choose from right now, especially within the main centres.

"So there isn't so much pressure on prices currently, with more than enough houses for sale to meet the current level of demand."