QV - Housing market gets spring lift, shrugs off election

Uncertainty over the new Government and its housing policies does not appear to have dented the market in November, the latest data from Quotable Value shows.

The latest monthly QV House Price Index shows nationwide residential property values for November year increased 6.4 per cent - compared with just 3.9 per cent in the October year.

Values rose by 3.6 per cent over the past three months compared with the three months to October when the market slowed to 0.9 per cent growth.

In Auckland values remained relatively flat - holding or rising slightly in some areas and dropping in others.

The former Auckland City Council suburbs also saw values rise 1.6 per cent year on year and 0.7 per cent in the past three months.

Auckland City East rose well above average for the region, up 3.3 per cent year on year and 1.8 per cent over the past three months.

Values dropped 1 per cent for North Shore City in the year to November but rose 1 per cent over the past three months.

In Manukau values were down 1.6 per cent year-on-year and 0.9 per cent over the past three months; annual growth was up in Franklin, Papakura and Rodney, although Rodney saw values drop 1.1 per cent over the past three months.

"There's been no significant change to the market dynamic since the change of government," said QV Auckland senior consultant James Steele.

"Values are holding in well-located areas while they have dropped back in some areas further out of the city centre."

An oversupply in some areas of Manukau was continuing to cause a decrease in prices there, "particularly in large new subdivisions which are above the median house price".

But other tightly held areas, particularly in central Auckland, were still doing well and seeing values still rising, he said.

"A lack of pressure on property owners to sell, particularly given low interest rates and solid rental levels, has meant that the large decrease in demand over the past year instigated by LVR restrictions has meant prices have remained relatively flat."

Hamilton City home values dropped slightly by 0.1 per cent in the past three months but were 1.4 per cent higher than in November 2016.

In Tauranga home values increased 3.3 per cent year-on-year, but had decreased 1 per cent in the past three months.

Meanwhile, values across the whole Wellington Region rose 9.8 per cent in the year to November and 2.6 per cent over the past quarter. Wellington City increased by 9.7 per cent year-on-year and 3.4 per cent over the past three months.

"It appears the spring/summer upturn has finally arrived in the housing market," said QV national spokeswoman Andrea Rush.

"The easing in LVR restrictions in January and retail banks' lending criteria is likely to help improve activity and demand in the housing market as we move through the summer months but it's possible the usual slow-down over the Christmas period may mean we don't see the full impact of this until February and March next year."