House price growth has dropped below 10 per cent a year for the first time in two years.
QV’s latest data shows that property values nationwide increased 9.7 per cent in the year to May, to an average $634,018.
In Auckland, values were up 9.3 per cent year-on-year, the slowest rate of growth since November 2014. They moved just 0.1 per cent over the quarter.
That’s good news.
“Sales volumes are lower than they were this time last year particularly in Auckland and its possible market activity may now remain more subdued until after the election,” she said.
QV Auckland Homevalue manager James Steele said record prices were still being achieved for well-positioned and well-maintained properties but, for other properties, sellers sometimes had to settle for a lower price than they might have achieved last year.
“We are also seeing vendors who are willing to withdraw their properties from the market if they do not achieve the price offer they are wanting,” he said.
“Entry-level homes in South Auckland suburbs such as Mangere, Papakura and Manurewa where you can still find a property for under $650,000 are being sold mostly to first-home buyers with investors no longer very active in this part of the market.”
Hopefully it is a combination of both the demand and supply side measures implemented in the last couple of years taking bite.