Housing values continue their steady decline

House values dropped further in the year to February, says QV Valuations, which expects values to continue easing for the rest of the year.

The country's houses lost 8.9 per cent of their value in QV's index, which is calculated over the last three months' market figures compared with the same period last year.

This follows an 8.3 per cent decline in QV's index to January, reported last month.

The national average house sale price is now $383,786.

QV Valuations spokesman Blue Hancock said values in the main centres continued to drop further - Auckland and Dunedin to -9.4 per cent, Wellington -9.3 per cent, Christchurch -9.1 per cent, Whangarei -12 per cent and Gisborne -12.2 per cent.

On the bright side, Hamilton's values stalled at last month's -10 per cent, while Tauranga improved from -9 per cent to -8.4 per cent and Rotorua from -11.9 per cent to -10.8 per cent.

Mr Hancock said the valuations showed the continuing impact of the economic climate, particularly concern over job security and uncertainty about how the recession overseas would hit New Zealand.

"Our expectations are that sales volumes will remain relatively low for the rest of this year, with values continuing to ease back marginally."

Growing sentiment that "now is a good time to buy" is being matched by the caution of buyers, who are taking their time to research the market.

Auckland QV valuer Glenda Whitehead said valuers noticed renewed buyer interest in areas such as Ponsonby, Grey Lynn and Mt Albert, with quality homes attracting multiple offers or competitive bids.

"Prices achieved are at a better level than those seen last year."

She said the average Auckland house sale price had risen from $496,618 to $502,193.

Values dropped about -11.4 per cent over the year in coastal North Shore, East Auckland and Manukau central.

Hamilton QV spokesman Richard Allen said values in the city's southwest dipped to -11.1 per cent and the average sale price dropped from $342,347 to $334,068.

In Tauranga, Shayne Donovan-Grammer said the average sale price was $421,151 and most interest was shown in lower-priced homes by investors and first-home buyers. Lower home lending rates seemed to be raising market activity but this was yet to convert into sales.

"Vendors are still grimly holding on to what they think their property is worth while buyers are insistent on buying at heavily discounted prices."