House price growth dips below 10 per cent, slowest in two years

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1 NEWS

Nationwide growth in house prices has dropped to below 10 per cent, the slowest rate in two years, and Auckland has seen its lowest increase since November 2014.

The Government has three community housing providers on board and says two more will commit in the coming weeks.

Source: 1 NEWS

The latest monthly Quotable Value House Price Index shows nationwide residential property prices for May increased 9.7 per cent over the past year which is the slowest annual rate in two years. 

Prices rose by 0.4 per cent over the past three months and the nationwide average price is now $634,018 which is 53 per cent above the previous market peak of late 2007. 

When adjusted for inflation, the nationwide annual increase drops to 7.4 per cent and prices are now 27.8 per cent above the 2007 peak.

Prices across the Auckland Region rose 9.3 per cent year on year which is the slowest annual rate of growth seen since November 2014. 

Quarterly price growth in Auckland remains flat, rising just 0.1 per cent over the past three months. 

The average price for the Auckland Region is now $1,044,561 and prices are now on average 91.1 per cent higher than the 2007 peak.  

Adjusted for inflation, Auckland prices rose seven per cent over the past year and are 44 per cent above the 2007 peak. 

It's possible market activity may now remain more subdued until after the election"
QV national spokesperson Andrea Rush

"Nationwide value growth continues to ease back due to lower demand in the housing market caused by the latest round of LVR restrictions and tougher lending criteria from the banks as we head into the winter period," said QV national spokesperson Andrea Rush.

Sales volumes are lower than they were this time last year, particularly in Auckland, and it's possible market activity may now remain more subdued until after the election, she said.

Hamilton City house prices rose slightly by 0.9 per cent over the past three months. Prices were 12.3 per cent higher than in May 2016 and are now 48.6 per cent higher than the previous peak of 2007. The average value in the Hamilton is now $537,152.

Tauranga prices rose at a faster quarterly rate in May than during April, up by 1.3 per cent over the past three months and 15.4 per cent year on year. Values there are now 41.9 per cent higher than the 2007 peak. The average value in the city is $683,012. 

Prices across the entire Wellington region rose 20.4 per cent year on year and 3.1 per cent over the past three months and are now 33.4 per cent higher than in the 2007 peak. The average value across the wider region is now $607,907. 

Christchurch City prices rose just one per cent the year since May 2016 and fell by 0.7 per cent over the past three months. They are now 30.5 per cent higher than the previous peak of 2007.

Dunedin house prices are continuing on an upward trend, rising 15.5 per cent in the year since May 2016 and 3.9 per cent over the past three months. Prices are now 30.6 per cent above the 2007 peak which is on par with the percentage Christchurch prices are above 2007 levels. The average value in Dunedin is now $373,810.

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