From www.stuff.co.nz, this a.m.
Average house sale prices in the Wellington region took a $17,000 tumble last month, according to Quotable Value figures.
If the trend continued, 2008 could see house prices falling in some areas, QV said.
The national average house sale price dipped more than $4000 to about $389,000, according to March figures, adding to the gloom of "terrible" sales volumes reported last week.
The weaker figures point to many investors selling cheaper homes in the face of rising mortgage interest rates.
Real Estate Institute figures issued on Friday showed home sales dropped more than 20 per cent in March compared with February, to the lowest level in 17 years.
Some economists called the result "simply terrible".
The median house price rose slightly in the institute figures, to $343,000, though some economists expect prices to fall about 10 per cent this year.
The QV figures out today show that, in the Wellington region, the average sale price slumped $17,000 to about $440,500 this month, though annual property values are still up more than 8 per cent.
The year-on-year change is at its lowest level in three years, QV says, down from a 16.5 per cent annual gain seen in August last year.
"If this trend continues then it is likely that parts of the region will show declining values before the end of the year," QV Valuations spokesman Max Meyers said.
Some areas and types of property would be more affected by changing values than others, he said.
"Well-presented properties in good condition are holding their value well."
Fewer deals were being done than last year and sellers had to negotiate to get a sale, Mr Meyers said.
The national QV figures show annual growth for home prices was 6.5 per cent in March, down from 7.7 per cent in February.
The increases are an average calculated over the three months to the end of March, compared with the same period last year.
The QV quarterly figures are seen as a more reliable indicator of house price movements because they compare like with like homes.
The Real Estate Institute's median price figures take no account of differing quality or size of homes sold each month.
"The market is continuing to soften, with more listings and fewer buyers leading to reduced demand," QV spokesman Blue Hancock said.
"While some properties or localities are selling below previous expectations, other areas continue to hold up well."
Market sentiment was negative and likely to remain so through the winter months, he said.
"The drop in average sale price this month is a reflection of more activity at the bottom end of the market, and less at the top end, rather than any significant drop in value.
"Many investors may be seeking to reduce their exposure to increasing mortgage costs, and having made good capital gains over the last few years are now looking to sell."
Deutsche Bank economists say the extremely weak Real Estate Institute sales figures out last week show buyers are on the sidelines, waiting for lower house prices and a fall in interest rates.
The number of house sales in March was down more than 50 per cent on the same month last year.
If sales volumes stay down at present levels, prices are expected to continue falling, with Deutsche Bank forecasting a 10 per cent price fall nationally.
Bold emphasis is mine.
Average house sale prices in the Wellington region took a $17,000 tumble last month, according to Quotable Value figures.
If the trend continued, 2008 could see house prices falling in some areas, QV said.
The national average house sale price dipped more than $4000 to about $389,000, according to March figures, adding to the gloom of "terrible" sales volumes reported last week.
The weaker figures point to many investors selling cheaper homes in the face of rising mortgage interest rates.
Real Estate Institute figures issued on Friday showed home sales dropped more than 20 per cent in March compared with February, to the lowest level in 17 years.
Some economists called the result "simply terrible".
The median house price rose slightly in the institute figures, to $343,000, though some economists expect prices to fall about 10 per cent this year.
The QV figures out today show that, in the Wellington region, the average sale price slumped $17,000 to about $440,500 this month, though annual property values are still up more than 8 per cent.
The year-on-year change is at its lowest level in three years, QV says, down from a 16.5 per cent annual gain seen in August last year.
"If this trend continues then it is likely that parts of the region will show declining values before the end of the year," QV Valuations spokesman Max Meyers said.
Some areas and types of property would be more affected by changing values than others, he said.
"Well-presented properties in good condition are holding their value well."
Fewer deals were being done than last year and sellers had to negotiate to get a sale, Mr Meyers said.
The national QV figures show annual growth for home prices was 6.5 per cent in March, down from 7.7 per cent in February.
The increases are an average calculated over the three months to the end of March, compared with the same period last year.
The QV quarterly figures are seen as a more reliable indicator of house price movements because they compare like with like homes.
The Real Estate Institute's median price figures take no account of differing quality or size of homes sold each month.
"The market is continuing to soften, with more listings and fewer buyers leading to reduced demand," QV spokesman Blue Hancock said.
"While some properties or localities are selling below previous expectations, other areas continue to hold up well."
Market sentiment was negative and likely to remain so through the winter months, he said.
"The drop in average sale price this month is a reflection of more activity at the bottom end of the market, and less at the top end, rather than any significant drop in value.
"Many investors may be seeking to reduce their exposure to increasing mortgage costs, and having made good capital gains over the last few years are now looking to sell."
Deutsche Bank economists say the extremely weak Real Estate Institute sales figures out last week show buyers are on the sidelines, waiting for lower house prices and a fall in interest rates.
The number of house sales in March was down more than 50 per cent on the same month last year.
If sales volumes stay down at present levels, prices are expected to continue falling, with Deutsche Bank forecasting a 10 per cent price fall nationally.
Bold emphasis is mine.