QV’s Residential Price Index for Wellington

QV’s Residential Price Index for Wellington

QV’s Residential Price Index for October shows that property values in the Wellington region are 0.9% lower than the same time last year. After falling for the first half of 2011, values in Wellington have picked up slightly in the last few months.

Mr Pieter Geill of QV Valuations said; “Values in the Wellington Region appear to be fluctuating within a narrow band over the last three months. With the exception of Lower Hutt, which fell marginally, the rest of the region has shown a slight increase.”

Mr Geill said “We are seeing some positive signs in the market. This includes more activity in the first home buyer segment. However, purchasers continue to be very cautious.”

“There are a greater number of properties being listed and we are having more people requesting valuations to enable them to set asking price. However, the increase in listings doesn’t appear to directly translate into a corresponding increase in the number of potential buyers. Also, sellers lack the confidence to commence their search for their next property until they are sure their existing one has sold. So, while we are seeing increased activity, sales volumes are still low” Mr Geill said.

Mr Geill said. “There are very early signs of an increase in sales volumes, which may in turn lead to an increase in prices over the months ahead.”

QV’s Residential Price Index is calculated using sales data from the 3 months leading up to the month being reported. It is not the same as the average sales price, which fluctuates in line with the mix of properties selling in upper or lower price brackets. The average sales price for Wellington in October was $432,894.

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