Property values hold, sales fall | Hawkes Bay News | Local News in Hawkes Bay

Property values in Hastings are now similar to this time last year, while in Napier they remain above the same time last year but the gap continues to close.

With an average sale price of $333,079, Quotable Value's August figures show Napier values have grown 3.2 per cent in the last year, but are 6.1 per cent below the market peak of late 2007.

Hastings values are just 1.3 per cent ahead of where they were last year and have fallen more than 8 per cent from the peak, with an average price in August of $309,811.

Registered valuer Andrew White, of My Valuer in Ahuriri, said the Napier price had been "pushed up" because in August last year, 60 per cent of sales were for less than $300,000. In August this year, only around 40 per cent of sales were under $300,000.

"This shows lower-end properties are not meeting the market," Mr White said.

Sales volumes in Napier and Hastings are well below last year's levels, having dropped by 30 per cent in Hastings and 23 per cent in Napier. Mr White said this reflected a limited number of first-home buyers and banks being cautious about lending.

But he said there had been an increase in the number of sales in Napier in the past three months compared to the three months to May, when volumes were nearer 2008 levels in the recession.

Property prices nationwide have continued to fall, and are now 5 per cent below the market peak. QV valuation manager Glenda Whitehead expected values to keep slipping. She said market sentiment remains cautious, with little urgency among potential buyers, some of whom are struggling to get finance. Sales volumes are well below last year and the long-term average. There is a backlog of unsold property on the market, and those with homes for sale accept they will take longer to sell.

Mr White said buyers are still not meeting sellers' price expectations.

Trevor Kitchin, a registered valuer at Telfer Young, said a few sellers will have to sell and may need to drop prices further.

"But at some stage the market will balance, with supply and demand more even. The change to tax rates with increased take-home pay, the easing of official cash rate hikes, improved buyer demand in spring and the slow climb out of the world economic crisis by the New Zealand economy will help lift demand."

Mr Kitchin said it was a good time to enter the market, but buyers should do their homework.

"While prices may continue to ease, any further falls in value are likely to be modest. There are currently good buys available and these will begin to disappear when the market balances, but any improvement will likely be slow."