10 Nov 2011

Property values kept climbing last month

8:20 am on 10 November 2011

Property values continued to rise in October.

QV figures show property values are now 1.2% higher than the same time a year ago and 4.4% below the market peak of late 2007.

QV.co.nz's research director Jonno Ingerson says the improvement is becoming more evenly spread around the country.

He says values have been gradually rising for the last six months, led by increases in Auckland and quake-damaged Christchurch, but over the last month values have increased in other parts of the country as well.

Mr Ingerson says there's more confidence returning in some of the provincial centres due to increased payouts to the rural sector.

He says there has been a lack of quality properties available in Auckland, causing increased demand and pushing up prices.

Mr Ingerson says in Wellington there has been a feeling that the market could not drop much further, so it must level out.

Meanwhile, the BNZ-REINZ survey of more than 10,000 licensed real estate agents has found the real estate market is improving, with more vendors wanting to make a sale.

It is the fifth month in a row that agents think prices are rising, and the survey notes the market is moving towards favouring buyers.

The average sale price reached $399,821 in the last three months, although QV considers it a less reliable measure of value.