NZ property value slide begins to slow, may point to stabilisation
Dec. 7 (BusinessDesk) – New Zealand property values fell for an eighth straight month though the rate of decline is easing, which may be a sign the market is beginning to stabilize, according to the government valuer, QV.
Values in November were 0.7% ahead of the same period last year, down from a 1.5% gain in the previous month and a 2% gain in September, QV said. Values are now 5.6% below their peak of late 2007.
“The rate of decline has slowed in recent months and it appears as if values are beginning to stabilise,” said QV.co.nz research director Jonno Ingerson.
Still, the number of house sales remains relatively low and obtaining bank loans “remains difficult for some potential buyers.” At the same time, more houses have been put on the market in the past few months, increasing the stock of unsold property.
“We now expect that many buyers will delay any purchase decisions until the New Year,” Ingerson said.
The average sale price over the past three months fell to $397,805 from $399,055 in the three months through the end of October.