It was a stop start year for residential property values with some flat periods due to uncertainty associated with the LVR speed limits, interest rate hikes and an election, along with periods of rapid value increases in some areas and decreasing values in others.
Overall the nationwide average shows residential property values increased 4.9% or $22,652 during 2014 from $466,022 in December 2013 to $488,674 in December 2014, according to the latest statistics from Quotable Value (QV) powered by CoreLogic.
The average national value increased 1.5% over the final three months of 2014 and nationwide values overall are now 17.9% higher than the previous market peak reached in late 2007.
Values in the Auckland region increased 9.8% or $68,309 from $693,549 at December 2013 to $761,858 at December 2014. They rose 4.2% over the past three months and are now 39.4% higher than the previous peak of 2007.
Sales volumes were also down on 2013 for every month despite picking up towards the end of the year however they remain at historically low levels and CoreLogic research shows there were changes in who was buying property during 2014.
QV National Spokesperson, Andrea Rush, “After a slow start to the year following the introduction of the LVR speed limits, values picked up in February and March but then following four interest rate hikes during March and July value increases plateau-ed.”
“The prospect of further interest rate rises in the lead up to the election seemed to cause some uncertainty as to whether the market had peaked and this led to a slowdown in the market during the middle of the year.”
“For Auckland and Christchurch value increases slowed while in some other centres such as Wellington, Hamilton and Dunedin saw a decrease in values during this period.”
“However, once the election was over and interest rates rises were put on hold, there was a surge of new listings and activity with the coming of spring and values began to tick upwards again in most of the main centres.”
“The return of relatively low interest rates offered by the banks with cash incentives coupled with record migration levels has since led to a strong reacceleration of values in the Auckland.”
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