National house prices rose 4.2% over the past year with values rising in all major centres, according to Quotable Value.
By Jenny Ruth
Its index, which is based on settlements and is prepared on a three-month rolling average basis, rose 1.8% in the three months ended June and is now 1.3% below the boomtime peak in late 2007. In the areas facing the most pressure, QV's index for Auckland was up 5.9% on a year earlier while its Christchurch index was up 5.8%. “Despite the number of sales being up on recent years and values increasing, we are not experiencing a boom,” says QV research director Jonno Ingerson.
“Nationwide, the current number of sales is still around on-third below peak levels and over the past year values have increased only one-third as quickly as they did in the boom years 2003 to 2007,” Ingerson says. “Even in Auckland, the rapid increase in values over the past few months is less than the rate seen in the boom years. Overall, New Zealanders remain cautious around house buying and selling decisions.”
Both the national and Auckland annual increases match the price rises shown in the Real Estate Institute of New Zealand's house price index in March. The REINZ index is based on contracted sales in the previous month and is therefore more timely than QV's. REINZ's index showed a 5.3% annual increase in June and has now surpassed its previous 2007 peak.