The property market - bottomed out?

There are indications today that house prices - falling since late 2007 - may finally have bottomed out.

The property market stabilised in April and even managed to register a tiny increase in an index measure of the national market, according to QV Valuations.

There was a 9.2 per cent decline in property values over the last year in the April figures, which was a slight improvement on the 9.3 per cent decline reported last month.

This is the first time the trend in property values has improved since September 2007. Property values peaked in January 2008 and are now 9.6 per cent below that peak.

"We may be near the bottom of the market," said QV Valuations spokesman Blue Hancock.

"We expect values to remain relatively flat over the winter months, although the threat of rising unemployment may affect an increasing number of homeowners and potential home buyers.

"There will continue to be good opportunities for buyers who can afford to be in the market."

The average sale price declined from $378,399 in March to $372,981 in April because there were more sales at the lower end of the market.

There were more sales than we would normally expect at this time of the year, Hancock said.

"We are starting to see a shortage of listings, particularly at the lower value end of the market," Hancock said.

Prices tend to be holding for mid-value, well presented properties in good areas, whereas poorly presented properties and properties at the top end of the market are taking longer to sell and are struggling to hold their value.

The annual change in property values across Auckland has improved from minus 10.1 per cent last month to minus 9 per cent.

The Wellington area has also improved to minus 8.5 per cent, Hamilton to minus 8.8 per cent, Christchurch to minus 9.6 per cent and Dunedin to minus 8 per cent.

Tauranga is the only main centre to worsen, with the annual decline slipping to minus 9.9 per cent.

In regional centres the year-on-year change has improved to minus 9.8 per cent in Rotorua, minus 5.4 per cent in New Plymouth, and minus 10.2 per cent in Palmerston North.

Whangarei at minus 13.1 per cent and Queenstown Lakes at minus 9.3 per cent have both fallen further.

QV looks at a three month period compared to the same three month period a year ago.

- NZPA