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The property market is stabilising and there appears to be a general shortage of properties for sale across New Zealand, QV Valuation said in its latest report.
Nationwide residential property values have increased 0.4% in the June quarter compared to the previous quarter when values fell 2.1%. The national average sale price increased to $378,535 in June from $371,555 in May.
The QV national residential property indices for June show a 7.1%decline in property values during the last year. This is an improvement on the 8.1% annual decline reported last month.
Two thirds of the latest annual decline occurred between July and October 2008. Further slight declines continued through until April, and since then values have increased slightly.
"There is increased interest in the market in general, but more so, in good quality properties, often leading to multiple competing offers," said QV Valuation manager Glenda Whitehead.
The volume of sales is approaching more normal levels.
The shortage of listings is being put down to people no longer needing to sell as financial pressure eased while interest rates fell.
Other potential sellers are holding back and waiting for values to increase again, or the winter weather to abate, said Ms Whitehead.
Poorly presented properties need to be priced correctly to ensure they find their buyer, she said.
In the Auckland area the annual change has improved to minus 5.9 percent from minus 7.6 percent last month. Hamilton has improved to minus 6.6%, the Wellington area to minus 6.5%, Christchurch to minus 7.3% and Dunedin to minus 4.5%.
Tauranga was the only main centre to show a continued slight decline over the last quarter, but the annual change in values has still improved to minus 8% from minus 9.4% last month.
Whangarei improved slightly to minus 12.4%, Rotorua improved to minus 8.1%, Gisborne to minus 13.4%, New Plymouth to minus 3.3%, Palmerston North to minus 8.4%, Queenstown Lakes to minus 7% and Invercargill to minus 8.2%.
Property values in Wanganui have continued to decline in recent months so the annual change has worsened to minus 6%.
There are mixed opinions about the where the market will go over the coming months, according to a recent survey carried out by QV.
There has been an increase in the number of people intending to buy in the next 12 months, but fewer who intend to sell, which may lead to further shortages of properties for sale.
The changing balance of these buyer and seller sentiments will shape the market over the coming months.
