Residential property values reach new high

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Residential property values in Rotorua have increased to reached a new mean.

Values have increased by an average of 7.5 per cent this spring, reaching a new mean average home value of $742,615 − a figure that is 23.2 percent higher than at the same exact time last year.

Despite this, property consultant Derek Turnwald says local agents had been reporting falling numbers of participants at recent auctions and open homes.

'It does appear that first-home buyers are being marginalised now, due to changes to the LVRs, rising interest rates and increased debt funding criteria of the banks. Investors also seem to be losing interest.

'Although the number of requests for appraisals is reasonable and it looks as though the traditional increase of listings over the summer months will occur, confidence does appear to be going from the market, with FOMO being replaced by a fear of paying too much.”

Nationally, house values continue to rise, what lies beneath QV's latest figures is growing evidence that price pressure has shifted from the lower valued properties popular with investors and first home buyers, onto the higher valued housing stock where buyers are less impacted by credit availability and affordability constraints.

The average value increased 6.9 per cent nationally over the past three-month period to the end of November, up from the 5.3 per cent quarterly growth QV saw in October, with the national average value now sitting at $1,029,820.

This represents an increase of 28.4 per cent year-on-year, up from the figure of 27 per cent QV reported last month.

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