First-home values shrug off winter chill, rising fastest in 5 years

PHOTO: It’s been another winter of discontent for first-home buyers with entry-level house prices rising at their fastest rate in five years

The latest QV Quartile Index, which tracks house prices and sales at both ends of the residential property ladder, shows that the value of New Zealand’s least expensive homes increased by an average of 3.6% across the main centres this winter – a rate greater than the last two winters combined.

In the three months from the start of June to the end of August, first-home values have also risen by 0.3% more than the national average and 2.1% more than the same time last year.

Quotable Value general manager David Nagel commented: “Winter is usually a time when we see a bit of heat come out of the property market. We have seen that to a certain extent this year, with average house price rises dipping across the country’s main centres from an April peak of 3.1% in a single month to just 1.2% in August.

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“But the runaway residential property market that was unleashed last year is taking a long time to slow right down. House price rises will have to stop eventually, especially since interest rates are almost certainly going to rise soon, but unfortunately it’s not getting any easier for first-home buyers in the meantime.”