Wairarapa property market slows | Wairarapa News | Local News in Wairarapa

Property market activity in Wairarapa is slow, with property prices gradually decreasing
since March and sales volumes  low, Quotable Value says.

QV Wairarapa spokeswoman Jaime Benoit said winter was traditionally a slower period for the property market.

``But this seems to have been made worse by an inability for many potential purchasers to gain finance as large deposits and good banking histories are required.

``We expect this trend to con tinue at least until spring.

``It has become very important to ensure your property is listed at a realistic level,'' Ms Benoit said.

``Many vendors have over-inflated expectations of their property value.

``In a slow market, properties which are over-priced or have detrimental features will be overlooked by potential purchasers.

``We have noted an increase in the number of vendors obtaining valuations before set
ting their price,'' Ms Benoit said.

Nationally, property values have now dropped 0.8 per cent since March, after rising 4.9 per cent in the prior eight months.

As a result, values are now 4.1 per cent above the same time last year and 4.7 per cent
below the market peak of late 2007.

``The number of house sales in recent months has dropped around one-third from the same time last year, and is also around one-third below the long-term average,'' Ms Benoit said.

QV research director Jonno Ingerson said: ``We are now approaching similar levels of
sales as during 2008 at the height of the recession.

 ``Unlike 2008, when the overwhelming negative sentiment of the global economic
crisis drove house values down, we are now seeing more of a `do-nothing' sentiment.''

According to QV Valuers, an increasing number of people appear to be shelving plans to buy houses and are instead focusing on reducing debt.