Home value growth slows again in Canterbury
Christchurch. File photo
Residential property values have continued to gently rise and fall throughout the country, according to the QV House Price Index for March, with the average rate of home value growth slowing once more in Canterbury.
QV data shows residential property values increased across the overall Canterbury region as a whole by 1.4 percent this quarter, which is down on the 2 percent growth on the quarter to the end of February, and 2.9 percent for the quarter to end of January. Annually, the average home value is 3.1 percent higher than at the same time last year.
In Christchurch, the average home value has increased by 1.5 percent to $763,993 this quarter, which is down on the 2.4 percent growth recorded for the quarter to the end of February. The city’s annual growth is shown as 3 percent.
In the wider Christchurch region, Selwyn District recorded an average quarterly increase of 0.6 percent and an average value of $834,522, down slightly on the 0.8 percent growth recorded in the February quarter.
Growth in the Waimakariri District has also levelled out at 0.2 percent for the quarter and an average value of $714,072, down on the 1.3 percent quarterly growth recorded in the previous index.
Local QV registered valuer Rod Thornton said, “We are seeing a reduction in construction actively and reported higher listings, with the high cost of living now appearing to be hitting harder and interest rates still high on the previous low levels that many buyers initially purchased on.”
“While we cannot absolutely predict what the next few months will bring, signs are there may be some further slowing of the market and downward pressure on values,” Thornton said.
QV operations manager James Wilson said, “‘Flat’ remains the word of the year so far when it comes to the current state of New Zealand’s residential property market. We’re seeing only modest movement across the nation – mostly up, but some down – which is a fair reflection of a housing market that is continuing to find its footing again amidst some pretty strong economic headwinds.”
“Although the pendulum has clearly swung in favour of prospective purchasers, with a relatively large number of properties on the market today giving them plenty of choice and helping to maintain downward pressure on prices overall, interest rates and credit constraints are continuing to make life very difficult for everyone,” Wilson said.
