Timaru Herald

11 September 2006

House prices in Timaru are levelling off, with values increasing only 13.2 per cent in the past 12 months to August, according to Quotable Value.

This was compared with 24 per cent in the 12 months leading up to December last year.

The average price paid for a house Timaru was $213,530 up from $200,040 in March.

In the Mackenzie, values decreased by 5.5 per cent in the 12 months leading up to August. The average house price in this period was $254,500.

In Waimate house prices increased by 6.8 per cent in the 12 months leading up to August with the average house price in this period 126,054.

Mackenzie and Waimate statistics were based on a small sample size which could affect overall accuracy.

Residential property statistics show a 10.5 per cent growth in national property values in the past year (calculated over the three months ending August 2006 in comparison to the same period last year).

The growth rate dropped from 11.1 per cent reported in July. Over this period, the New Zealand average sale price was $340,473.

"Across the country, there is a gradual easing in the property market," said QV spokesperson Glenda Whitehead.

"Prices and hence property values are still higher year on year, with no signs of any dramatic falls, but conversely the demand that was pushing values up faster and faster over the past three years has definitely eased back."