Bay property sales subdued as buyers wait

New Zealand values for August have risen 6.9 per cent over the past year and 1.7 per cent over the past three months. Photo / Glenn Taylor

Hastings house values have fallen 2.3 per cent, while Napier's remained steady, the QV Residential Price Movement Index, for sales in the three months to the end of August, shows.

Hastings values are 2.5 per cent lower than they were in August last year and Napier City values 0.9 per cent higher.

QV Hawke's Bay valuer Bevan Pickett said sales volumes and activity continued to be subdued across Hawke's Bay. "It is possible that this slowing in activity may begin to have an effect on values in parts of the district."

He said Reserve Bank restrictions on the number of low-deposit mortgages banks could issue, this month's national election and potential interest rate rises brought a "sit and wait attitude" to some buyers.

"Up until now values have been relatively stable for a sustained period, but buyers are cautious," he said. "There is still positive interest being shown in well presented and realistically priced properties."

The index recorded the average current value in Wairoa as $149,570, Hastings $294,662, Napier $324,829, Central Hawke's Bay $211,646 and Tararua $148,499.

All Hawke's Bay areas recorded prices below the market peak of about seven years ago.

New Zealand values for August have risen 6.9 per cent over the past year and 1.7 per cent over the past three months. That means they are 15.8 per cent above the previous market peak of late 2007.

When adjusted for inflation the nationwide annual increase drops slightly to 5.2 per cent and values remain below the 2007 peak by 0.8 per cent.

National values are 6.9 per cent up on a year ago and 1.7 per cent over the last three months, led by rises in Auckland and Christchurch. The Auckland market has risen 11.4 per cent year on year and values are up 33 per cent since the 2007 market peak.

Residential property values in Christchurch City are up 5.9 per cent year on year and 21.8 per cent since market peak.

In other regions around the country price changes were variable but, overall, flat.