7 September

From The Timaru Herald

The average sale price of Timaru homes has crept up for the second month in a row.

In the longer term, prices in the city are also holding up better than in most other centres, according to figures released by QV Valuations.

Residential property values, released yesterday, show Timaru house prices fell 1.4 per cent in the 12 months ended August 31 a reasonably stable result compared with the national average, which shows prices 3 per cent down on this time last year.

The figures are based on sales data entered into QV's system in the previous three months, compared with the same three-month period 12 months earlier.

The average sale price of a Timaru home now is $231,195, compared with $228,202 at the end of July and $223,747 at the end of June.

The figures for both Waimate and Mackenzie were not considered accurate because of the small number of sales in each area.

It is the second successive month that Timaru house prices have crept up.

The value declines seen in 2008 have been partially recovered although Timaru appears to have been at the tail end of the fall in values as the average price of a home is still below the $233,249 recorded in April, while nationwide, values are 2 per cent higher than they were in April.

Some areas are still experiencing up to a 15 per cent drop in property prices.

The national average sale price increased to $385,426 in August from $382,758 in July.

QV Valuations spokeswoman Glenda Whitehead said the number of sales in August were up from 12 months ago when they were at historic lows.

"The increase is typical for this time of the year as the number of listings and sales begins to pick up heading towards spring.

"Balmy temperatures no doubt, also helped."

Mrs Whitehead pointed towards a stronger confidence in the wider market with many buyers actively engaged in searching for properties."A general shortage of listings is leading to increased competition amongst buyers and is resulting in quality properties selling quickly and prices being pushed up. This is in stark contrast to last year when there were plenty of properties on the market but few buyers," she said.

All the main centres have increased in value over the last quarter which has led to further improvement in the annual change in all areas.