Nelson home values have increased by 16.4 per cent year on year and 5.0 per cent over the past three months, the latest monthly QV House Price Index shows .
The average value in the city is now $508,343. The Tasman district also increased by 14.2 per cent over the past year and 2.6 per cent over the past three months. The average value in the district is now $498,111.
QV homevalue Nelson Registered Valuer Craig Russell says, “There has been strong market activity to start the year with good numbers at open homes and multiple offers presented in some circumstances.”
“Demand continues to exceed supply in the residential property market and low listings levels are contributing to competition amongst buyers and driving prices up.”
“Easy contoured vacant sections in close proximity to good schooling have been highly sought after which is leading to an increase in land values and in turn contributing to rising property values in the region.”
“However, with interest rates are now past their historic lows and beginning to creep upwards as the cost of offshore funding increases. Increased funding costs and uncertainty going forward may impact market confidence in the region but as yet we have not seen any sign of a slow-down in the market.”
Nationwide residential property values for January increased 13.5 per cent over the past year. Values rose by 1.4 per cent over the past three months and the average value nationwide is $631,302.
The nationwide average value is now 52.4 per cent above the previous market peak of late 2007. When adjusted for inflation the nationwide annual increase drops slightly to 12.0 per cent and values are now 28.5 per cent above the 2007 peak.