Wanganui house values continue to buck trend

Wanganui City PHOTO/FILE

Wanganui property values continue to slide as the average price hits $180,000, new figures reveal.

Wanganui house prices dropped 5.4 per cent in the 12 months to June to $180,041, almost 20 per cent below the 2007 market peak.

The slipping values go against an inflating national trend, with national values increasing 8 per cent in the year to June to $476,346 - up 15 per cent on the 2007 peak.

According to the latest Real Estate Institute of New Zealand data, the median Wanganui house price in May this year was $120,000.

Philip Kubiak, of Property Brokers in Wanganui, said a 5.4 per cent drop was "in synch" with what he'd seen over the last year.

Philip Kubiak

"It's just a continuation of a pretty static market.

"In Wanganui in particular there have been months where there have been quite a few low value sales which drives that average down."

The low end sales included a number of former Housing New Zealand houses, he said.

QV national spokeswoman Andrea Rush said while the national value was still on the rise, the picture around the country was mixed.

"Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were in June last year," she said.

"Values in Wellington and Dunedin are showing a downward trend this month, as are a number of other provincial centres around the country."

Sales volumes and home loan approvals were also down "considerably" - about 15 to 20 per cent lower than the same time last year.

The Reserve Bank last month raised its official cash rate by 25 basis points to 3.25 per cent and is expected to keep raising rates, with economists predicting another increase to 3.5 per cent on July 24.