QV’s September statistics for the residential property market report a 5.8% decline in national property values over the past year (calculated over the three months ending September 2008 in comparison to the same period last year), down on the 4.5% decline reported in August. The average New Zealand sale price for September was $379,854.
“Indications last month that a more optimistic mood had come over the market have since evaporated” said Mark Dow of QV Valuations. “We are moving into an economic recession and there is plenty of speculation that things will get worse before they get better. Uncertainty about the impact of the global credit crisis, the usual lack of activity prior to an election, and significant tightening of lending policies by the banks is contributing to pessimism in the property market and there is little expectation of any spring resurgence. The requirement to have a significant deposit will take many first home buyers and investors out of the market, reducing demand and putting further downward pressure on prices” said Dow.
Across the Auckland area property values are down 7.0% compared to the same time last year, declining further from the -5.8% reported last month. Hamilton City’s values have slipped slightly to -8.8% and Tauranga to -7.6%. The Wellington area has also declined further to -5.4%, Christchurch to -7.1% and Dunedin to -8.5%.
Most of the main provincial North Island centres are showing further declines in year on year value compared to those reported last month. Whangarei has declined further to -6.6%, Rotorua -6.4%, Napier -4.4%, Hastings -7.0%, New Plymouth -7.0%, Wanganui -5.5%, and Palmerston North -9.4%. Gisborne is the only centre to improve slightly to -10.1% compared to the -10.4% reported last month. In the South Island, Nelson dropped further to -4.0%, Queenstown Lakes to -5.3%, and Invercargill to -1.6%.
What’s happening in Taranaki/Taupo/Wanganui?
The property market in from my perspective is rather interesting and by no means dull. I however am seeing many people sitting on the fence and waiting to see what happens due to current world events. We all know whats happeing in the economic world. The credit crunch, House Prices Falling, Finance companies going under, Banks Closing, Sharemarket drops, Government Bailouts, It all sounds scarey doesnt it. And the reality of the matter is it is. The world is in a tight situation financially and is likely to be for some time. But this doesnt mean that the world is ending.
My best and honest advise if your selling or buying property at the moment use an agent. I am seeing alot of the agents I work with going over and above the call of duty now to work and help people get deals done. They are making sure everything is in order before a deal closes and are following the process to the end. Its fairly tough out there for everybody but we are all in the same boat. Talk to your agents, they are right in the thick of the property market and if they are informed and are good agents I have no doubt they will provide you the best advise for your unique situation what ever that may be. But make sure you look at all your options. When you know all your options it will make the whole process alot easier. Noone likes seeing someone in a tight financial situation. We are here to help.