NZ, Auckland house value growth slowest in two years
There are signs Auckland's housing market is cooling with an almost three-year low in property value growth.
Sales nationwide could be subdued until after this year's election, according to the latest analysis from Quotable Value (QV).
The figures for May show residential property prices across Auckland increased by 9.3 percent year-on-year - the slowest since November 2014.
It's a similar story across the country, with values increasing 9.7 percent over the past year - the slowest annual rate in two years.
- Quarterly value rose 0.4 percent nationwide.
- National average value is now $634,018 - 53 percent above previous peak in 2007.
- Adjusted for inflation, nationwide annual increase is 7.4 percent and values are 27.8 percent above 2007 peak.
- Auckland values went up just 0.1 percent in the past three months.
- Auckland's average value is $1,044,561; on average 91.1 percent higher than 2007 peak.
- Adjusted for inflation, values rose 7 percent over the past year and 44 percent above 2007 peak.
QV says that slower growth can be associated with lower demand caused by the latest loan-to-value ratios and banks being tougher on lending. The market is also heading into the typically slow winter period.
National spokesperson Andrea Rush says sales volumes are lower than the same time last year and could lead to market activity being more subdued until after the September 23 election.
There were some hotspots across the country over the last quarter, with Dunedin and Wellington values growing 3.9 percent and 3.1 percent respectively.
The average value in Dunedin is $373,810, while in the capital the value has risen to $607,907.
Tauranga also experienced a 1.3 percent growth in the May quarter with the average value now $683,012.
But QV says that seems to be an anomaly with "much of the frenzy" coming out of the market and returning to "more normal levels of activity and demand".
The regions are also seeing strong growth in value since before the 2007 peak, with Opotiki, Gisborne and the South Waikato District becoming popular.
Parts of Auckland, Hamilton's northeastern suburbs and New Plymouth saw decreases over the past three months.
Meanwhile most parts of the South Island, particularly in Tasman, and the MacKenzie and Central Otago Districts, are growing in value.
However, Buller District, parts of Christchurch, Waimate and Clutha District have seen values drop over the past quarter.