A window in to house prices
According to QV’s latest House Price Index, between June and August this year, NZ’s residential property values fell 1.6%. Auckland was down 0.4%, Christchurch 0.2% and Queenstown had a heavy fall with a thumping 1.0% drop. That said, on a per annum basis, prices are still up 4.8% but our annual growth rate is slowing. Two years ago, growth was 14.3% p.a. In the year to July 2018, it was 5.0%.
Meanwhile, housing affordability constraints continue to drive demand for two-bedroom semi-detached units and apartments. QV General Manager, David Nagel reckons the market faces ‘polarising forces’. On the one hand, there’s key market drivers like low rates, a growing population and a lack of supply, and on the other, there’s tightening credit conditions and government initiatives designed to take the heat out of the market. Bucking the general trend, however, is strong growth in the south, particularly Dunedin, Invercargill, and our smaller, regional towns.
This is all very good news for first home buyers. Sensing the slight panic in sellers’ keen to offload in case the market tanks, they are now in a prime position to negotiate a better price.