House prices up 6.6 per cent across NZ last year, sales volumes plunge

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1 NEWS

The national average house price rose 6.6 per cent, or 41,600, during 2017, to stand at just under $670,000 in December.

Many are still swapping out the big cities for the quiet life in the regions.
Source: 1 NEWS

The average national value increased 3.6 per cent over the final three months of last year, according to the latest QV House Price Index statistics. 

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According to QV the average national value increased 3.6 per cent over the final three months of 2017. 

Sales volumes were down on 2016 for every month during the year, and between February and October they were more than 20 per cent below 2016 levels.

Sales picked up in November when a post-election late spring surge saw them jump to just 10 per cent lower than November 2016 levels.

We saw a return to more normal levels of activity in housing markets around the country"
Andrea Rush, QV national spokesperson

"A slow-down in the rate of value growth in the housing market that began in the latter part of 2016 with the introduction of LVR speed limits requiring a 40 per cent deposit by investors continued throughout 2017," said QV national spokesperson, Andrea Rush.

"The frenzy in the market of the previous three years induced by high numbers of investors in the market subsided and we saw a return to more normal levels of activity in housing markets around the country," she said.

By October nationwide annual value growth had slowed to 3.9%, the lowest rate of growth seen in five years and for the Auckland Region it slowed to -0.6%, the slowest annual rate of growth seen there since March 2011, Ms Rush said.

Auckland prices up 0.4 per cent in year

The average value across the wider Auckland region increased 0.4 per cent, or $4,583, from $1.047 million at December 2016 to $1.051 million last month. 

Auckland values rose 1.2 per cent over the past three months. Annual growth picked up again across the region in the final quarter of 2017 with most areas seeing values rising again. 

Prices across the wider Wellington region rose 9.4 per cent, or $ 54,040, over the past year from an average value of $574,410 in December 2016 to $628,450 at the end of 2017. Values across the region rose 3.6 per cent over the last quarter of 2017.

South Island prices

Christchurch city values have remained stable, dropping slightly by 0.1 per cent over the past year from an average value of $494,247 in December 2016 to $493,706 last month. Christchurch prices have increased slightly by 0.4% over the past quarter.

Meanwhile, prices across most South Island regional centres are either flat or steadily increasing. 

The MacKenzie District continues to rise, up 5.2 per cent over the past three months and 24.7 per cent year on year, the highest annual rise in the country, while Southland and Invercargill are also continuing on an upward trend. 

Market growth remains strong in the Queenstown Lakes, as values increase 3 per cent over the past three months with an average current value now much higher than the Auckland Region of $1.111 million.  

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