The latest monthly house price index confirms a slowdown in values. The nationwide increase in values is now 6.9%, down from the 10% annual increase last December. The last three months is more indicative with an increase of 1.7% considerably less than the 2.9% for the same three months last year.
This slowdown in values is not unexpected, as it normally follows a decrease in sales volumes. Since October last year sales volumes have been below the same time the previous year and the last few months have been 10% to 15% below last year.
As you can see in the map below, Auckland has been the main driver of increasing national values and it too has seen a slowdown. While values are still rising the rate has slowed with the last three months increasing only 1.8% compared to nearly double that in the same three months last year. The North Shore has slowed the most, rising only 1% over the past three months.
Tauranga and Hamilton values are relatively flat over the past three months with just the first hints that they may be dropping. Wellington values have been dropping since April and are down 0.5% over the past three months, with Lower Hutt dropping fastest.
Christchurch values have slowed too, up only 1.1% over the past three months, well under half the rate of this time last year.
Many provincial centres in the middle of the North Island are now also dropping in value and are likely to keep dropping.