RTTNews - Monday, a report released by Quotable Value said the national residential property values in New Zealand dropped 7.1% year-on-year in June. This follows a 8.1% annual decline in May, reflecting continued stabilization of the property market, it said.

In the three months ended June, property values increased 0.4% sequentially compared to a 2.1% fall in the preceding quarter.

The national average sale price increased to NZ$378,535 in June from NZ$371,555 in May.

The volume of sales is approaching more normal levels, and the market is more stable. Decreases in property values over the past eighteen months combined with historically low mortgage interest rates have led to improved optimism and encouraged more buyers back into the market, QV Valuation Manager Glenda Whitehead said.

The report said there was a general shortage of properties for sale across the country. Lower mortgage rates have enabled many homeowners to re-fix their mortgages at lower rates for three to five years. This has either eased financial pressures so they no longer need to sell, or have led to homeowners deciding to stay put rather than sell and end up on a higher interest rate. Other potential sellers are holding back and waiting for values to increase again, or the winter weather to abate, Whitehead pointed out.

Meanwhile, the rate of fall in property value eased in most regions over the last quarter. Auckland, Hamilton,Wellington area, Christchurch, Dunedin, all showed improvements, while Tauranga was the only region to show a slight decline over the last quarter, the report said.

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