House prices set to increase over the next 12 months
The housing market has made a strong start to the year and is likely to gradually get stronger over the next 12 months, latest data from QV shows.
Figures revealed house price growth remained steady at 6.4% in the year ended January, with a national average price of $671,500.
A price recovery at the end of 2017 was sustained, and prices in Auckland grew at their strongest rate in more than a year – values rose nationally by 3.8% over November, December and January.
QV general manager David Nagel said the easing of bank lending rules, along with greater confidence about government policies, helped underpin sentiment.
Prices were still strong in Hawke's Bay, Wellington, and the top of the South Island, but slowed in Waikato and the Bay of Plenty.
Nagel said a shortage of houses and strong demand continued to support the market.
“January has seen values continue to rise in many places around New Zealand but values have dropped in others and in general activity has been slower in many places over the holiday season.
“Values in Auckland are now rising, the Wellington market continues to rise, however value growth has slowed in the Hutt Valley."
“Christchurch's housing market remained flat, while Dunedin continued its steady value growth, a trend in the southern city during last year.
“February and March were traditionally busier months for the housing market and moderate growth was expected this season,” Nagel added.
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