House prices end year only 4.9pc off late-2007 peak
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4:00 AM Monday Jan 11, 2010

Nationwide house values ended 2009 just 4.9 per cent below the late-2007 peak, having been as much as 9.6 per cent below the peak last April, QV's residential index for December shows.

While the recovery was led by the urban centres, QV (Quotable Value) is now seeing signs of confidence returning to provincial markets.

For the whole of 2009, New Zealand house values rose 2.8 per cent, with an average sale price of $404,671 in December, up from $393,373 in November, when prices were 5.9 per cent below the peak.

The year had shown a dramatic and somewhat unexpected level of turnaround in house values, QV said in publishing the December figures today.

After reaching their peak in late 2007, house values dropped steadily throughout 2008.

At the beginning of 2009 two camps developed - those that considered the market had much further to fall, and those that considered it was near the bottom, and perhaps heading towards a good time to buy.

More here.