Nelson home values are now increasing at a faster rate than Auckland, up 16.6 per cent year on year and 4.8 per cent over the past three months.
The latest monthly QV House Price Index shows the average value in the city is now just shy of half a million dollars and is sitting at $499,866.
The Tasman District also increased by 14.4 per cent over the past year and 5.0 per cent over the past three months. The average value in the district is now also just shy of half a million dollars, sitting at $499,082.
QV homevalue Nelson Registered Valuer Craig Russell says, “Property values continue to rise in the Nelson/Tasman region given the low interest rate environment, strong regional economic performance and anecdotally strong migration to the region.
“There is traditionally limited sales activity over the Christmas break and it will be interesting to see whether the property market has the same impetus it had through the latter stages of 2016.”
According to the index, Nelson listing numbers have increased over the previous three months while Tasman District listing numbers have remained relatively stable.
“We appear to be entering the fear of missing out (FOMO) stage of the property cycle which combines the perception of always increasing property prices and idea that interest rates will remain relatively low.
“House and land packages remain a popular option given there are incentives to build new and increase the housing supply. This has resulted in sections being relatively hard to come by and an increased wait time for the building process to commence.”
Nationwide, residential property values for the month of December increased 12.5 per cent over the past year.
Values rose by 1.3 per cent over the past three months and are now 51.5 per cent above the previous market peak of late 2007.
However, when adjusted for inflation the nationwide annual increase drops slightly to 12.2 per cent and values are now 28.5 per cent above the 2007 peak.
The average value nationwide is $627,905.