House prices hit the bottom (maybe)

AFTER falling by only 9.2% in the past 12 months, QV (Quotable Value) said the market maybe near the bottom.

Prices being paid for property in most provincial centres have been flat for the past few months leading to improvements in the year on year change in many areas.

Added to the slightly-better-than-last-month figures is an improvement in activity. "We are starting to see a shortage of listings, particularly at the lower value end of the market,” said Blue Hancock, QV spokesperson.

The year on year change has improved to -9.8 per cent in Rotorua, -5.4 per cent in New Plymouth, and -10.2 per cent in Palmerston North. Gisborne has remained steady at 14.8 per cent, while Whangarei at -13.1 per cent and Queenstown Lakes at -9.3 per cent have both fallen further.

“Recent stabilisation of property values in many areas suggests that we may be near the bottom of the market," said Hancock.

"We expect values to remain relatively flat over the winter months, although the threat of rising unemployment may affect an increasing number of homeowners and potential home buyers. There will continue to be good opportunities for buyers who can afford to be in the market," he added.

See further details, and a breakdown by region here.