The average New Zealand sales price fell $11,000 to $400,656 in the three months to March, when compared with last month, while values nationally are now 2% below the same time last year, the latest figures from QV Valuation shows.
Glenda Whitehead of QV Valuation said the underlying statistics suggested the Auckland market remained stable, but a prediction of limited short-term value growth meant the market lacked urgency.
Prices in Auckland fell 1% in March and were down 2.9% in Wellington. QV is predicting a volatile market in the coming months.
‘With the uncertainty created by the Christchurch earthquake, and the low level of sales activity in previous months, it is reasonable to expect that there may be some volatility in the market for a few months,’ said QV.co.nz research director Jonno Ingerson.
While there had been a significant slowdown in the number of sales in the Christchurch market since late February, there had been strong interest for property in areas not affected by the earthquake, such as the North Western suburbs.
‘The fact that the market has some traction is very encouraging, but there is still a long way to go. The demand is generally coming from families wanting to get on with it,’ said Melanie Swallow, QV's Christchurch spokeswoman.
None of the provincial centres recorded property values above the same time last year, with values falling 6.2% in Whangarei and 1.7% in Queenstown Lakes.
The rental market is also subdued. The latest figures from Trade Me property reveal supply outstripped demand in everywhere but Auckland city during the last quarter, as immigration slowed, public service jobs were axed, and demand for rentals in some cities dipped as the university year kicked off.
Trade Me's head of property Brendon Skipper said a lack of supply continued to dominate the Auckland rental market during the last quarter with average rents up 7% across the city, with further rises tipped if the current trend continues.
Elsewhere supply had turned the corner in the last quarter of last year after a period of decline, Trade Me said. In the capital, where rents dipped by 2%, there were 17% more rental properties in the market than during the same time last year and fewer people wanting them.
There is anecdotal evidence that landlords are starting to offer incentives like diminished rent if you sign for a long term contract, or upgrading heating systems and installing flat screen televisions to tempt tenants.
