Wanganui mean property values have risen in the past year but a local real estate agent says the increase is simply a reflection on the types of properties that are selling.
First home buyers are buying properties in the mid-price range, while cheaper properties are not selling, says Ross Watson from Ross Watson Realty.
Wanganui values increased 2.3 per cent in the year to October to an average value of $193,502 but remain well down on the 2007 market peak, latest Quotable Value figures show.
Nationwide, property values rose at an 8.9 per cent annual pace to hit an average current value of $457,312, driven by a shortage of houses in Auckland and Christchurch.
QV research director Jonno Ingerson said new Reserve Bank caps on low-deposit loans were likely to affect property values and the volume of sales. The effects would be most felt by first home buyers and in provincial areas, but it would be some months before any evidence showed.