Going up again: home values increase 9.6% in a year

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Here is another interesting Wellington real estate related news article that we thought may provide you with helpful information.


 

News from QV
Residential property values across the whole Wellington Region rose 9.6% in the year to September and increased 1.6% over the past quarter and the average value is now $664,418.

The latest QV House Price Index shows that Wellington City values increased 8.5% year on year and by 1.9% over the past three months and the average value there is now $795,098.

Values in Upper Hutt rose 8.8% year on year and 1.8% over the past three months; Lower Hutt rose 3.4% year on year and 0.1% over the past quarter; Porirua rose 7.8% year on year and 0.3% over the past quarter. Finally, the Kapiti Coast rose 7.4% year on year and 1.2% over the past three months.

QV Wellington Senior Consultant Paul McCorry said, “Values have continued to level off over the last three months, predominantly in the higher-value eastern suburbs of Wellington City. The more affordable northern suburbs continue to show some modest value growth, highlighting the influence of first home buyers in these areas.”

“Due to affordability constraints, demand remains buoyant for apartments in Wellington City which has seen some recent value growth. These new developments tend to sell well, with many still being purchased off plans.”

“In the Hutt Valley and Porirua, overall values have either stayed the same or grown modestly over the past three months but these areas lead the way in terms of year on year value appreciation.”

“The low interest rate environment and low listing numbers will continue to support values at their current levels for in the immediate future. This is further supported by the Reserve Bank’s recent announcement that the Official Cash Rate will remain at 1.75%, as it has done since September 2016, which is likely to maintain favourable mortgage lending rates.”

“While listing numbers remain close to historically low levels, the month of September has seen the typical spring surge of properties coming to market and we would expect this to continue with the approach of summer. In saying this, the increased supply is likely to keep a lid on value growth over the coming months.”

“After a period of sustained growth, the Wellington market appears to be settling into a holding pattern. With modest growth but good price levels supported by limited stock, it remains a sellers’ market for the time being. The coming months will see a slight change in market dynamic with the expected increase in available properties, however this cyclical change is not anticipated to cause a major shift in the current pattern.”

Continue reading this article at the original source from Scoop Wellington

 

 

 

 

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2018-10-10T13:38:33+00:00