A small rise in Waitaki house values

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Residential property values in Waitaki District increased by a small amount in the year to January 30.

The latest QV property value index shows Waitaki property values rose 0.5 per cent with the average Waitaki home valued at $213,788 which was higher than that for Invercargill which is $205,748.

Dunedin-based QV valuer Duncan Jack said the statistics presented a “reasonably” accurate picture of what was occurring, and there were no negative shifts in the district, nor in many provincial areas around the country.

“Well-priced properties are selling quite quickly in Oamaru and not so quickly in small towns, but there are no negative shifts in value. It’s just ticking along.”

During the same 12-month period, Waimate’s values rose 13 per cent for an average house value of $200,748. Dunedin values rose 2.5 per cent for an average value of $289,078.

Nationally, the index shows that residential values for January have increased 9.6 per cent over the past year, and 2.2 per cent over the past three months. This means they are now 12.8 per cent above the previous market peak of late 2007.

Jonno Ingerson, QV.co.nz research director, said property value growth nationwide had slowed down in the first month of the year.

“The predicted increase in mortgage interest rates in the near future are likely to also slow down values further. This may in fact already be affecting buyer confidence and contributing to the slowing we are seeing.”

Meanwhile, latest data produced by CoreLogic shows that first home buyer activity declined in December and January.

In September and October there was an increase in first home buyer activity which was probably in response to signals from the Reserve Bank that LVR (loan to value ratio) speed limits were likely to come into place in October.

CoreLogic said this led to a flurry of activity from first home buyers keen to secure a property before the limits came into force.

By CHRIS TOBIN