Property values now 5pc below 2007
2:34 PM Thursday Oct 7, 2010

Property values continue to lose ground across the country and are now more than 5 per cent below the market peak of 2007.

Quotable Value's September index - calculated from the previous three months' market figures - is still 2 per cent above the same time last year, but the gap is closing.

Values climbed 3.4 per cent in the six months to March this year, but have fallen 1.4 per cent since then, as market sentiment remains cautious.

The average New Zealand sales price in the past three months dropped from $407,900 to $401,968.

Qv.co.nz research director Jonno Ingerson said low numbers of sales continued to be a dominant feature of the market as buyers "held back" to see where the market went.

Some were being cautious in their decision making, while others were unable to find suitable properties, he said.

"Other financially secure vendors are holding out for their desired sale price rather than being tempted by low offers," Ingerson said.

Valuers, particularly those in Auckland Wellington, were reporting a lack of well presented, quality properties on the market.

More here.