Although they remain more active than first-home buyers, taking advantage of lower competition compared to previous peaks, many investors are still taking a “wait and see” approach.

That could change as house prices have dropped back considerably, even though they are rising every month.

Those rises are minimal. Quotable Value’s shows the average value of homes across the country rose by just 0.1 per cent over the three months to April.

The average price is sitting at $914,504, down 1.3 per cent when compared to April last year.

Because of lower home values and dropping interest rates and after five years of significant volatility, the market appears to have stabilised.

In some areas of Auckland, standalone homes are now selling the $700,000 range.

“We’re not seeing big swings anymore,” James Wilson QV operations head says.

“Home values are holding steady as we head into winter.”

He says although interest rates are heading down, demand is tempered by cautious buyer sentiment and a large supply of properties.

Prices in six urban areas dropped. Auckland region was down 0.1 per cent, Tauranga 0.2 per cent, Palmerston North 0.7 per cent, Wellington region 0.5 per cent, Queenstown Lakes 0.4 per cent and Dunedin 0.7 per cent.

Northland

Northland home values have experienced modest recovery momentum rising 1.30 per cent in the three months to April. Whangarei was the top performer in the region with values up 3.19 per cent; value growth in the Far North slowed to just 0.17 per cent; while the Kaipara District was down -2.05 per cent, reversing the gains it made earlier in the year.

The annual trend remains negative at -2.79 per cent, but growth signs suggest renewed buyer activity, particularly in Whangarei among investors and first home buyers. The average home value across the region now sits at $731,090, up from $721,626 in January.

Auckland

Across the Auckland region values are down -0.08 per cent over the past three months and 2.89 per cent year on year. The current average value is now $1,244,996.

Manukau (0.53 per cent), Papakura (0.40 per cent) and Franklin (0.81 per cent) all posted gains, while in the local council areas previously known as Auckland City values softened (-0.28 per cent); North Shore was down the most (-1.19 per cent); Waitakere also dipped (-0.33 per cent); and Rodney (-0.06 per cent) also eased slightly over the same period.

Local QV registered valuer, Hugh Robson says market conditions remain similar to three months ago. “We continue to see the strongest demand from first home buyers who are often purchasing more affordable townhouse developments..

“Annual growth remains in decline at -2.89 per cent, pointing to a patchy recovery across the super city.”

In areas where supply levels are beginning to be absorbed and owner occupier interest remains stronger, we are starting to see some early positive signals,” Robson says.

Bay of Plenty

Home values were down in Tauranga -0.23 per cent. The city’s average home value is now $1,014,726, which is -1.48 per cent less than the same time last year.

Meanwhile, the Bay of Plenty region saw values rise slightly by 0.28 per cent, but were down -1.30 per cent year-on-year.

Kawerau had the greatest increase, rising 7.16 per cent over the quarter and 1.59 per cent year-on-year. Western Bay of Plenty district also saw values rise 2.96 per cent; Gisborne was also up 2.78 per cent; as was Rotorua up 0.14 per cent; while Opotiki values dropped -2.21 per cent.

Waikato

Hamilton’s average home value is now $792,221, rising 0.12 per cent over the past quarter and 0.36 per cent year-on-year.

Local QV registered valuer Marshall Wu says while demand levels are beginning to return in mid-price brackets where investor and first home buyer competition meets, a significant volume of unsold inventory continues to linger on the market.

“So, although April’s upturn in Hamilton’s home values is a positive sign, it remains premature to declare a market recovery,” he says.

The Waikato region demonstrated slight improvement in the April quarter with a gain of 0.60 per cent and 0.03 per cent year-on-year. The average home value across the region now stands at $817,310. Waitomo District surged 5.41 per cent, making it the standout performer.

Taranaki

Home values in New Plymouth have risen 1.24 per cent over the past three months and are 1.27 per cent higher than the same time last year. The average home value is now $729,739.

Meanwhile, the average home value in South Taranaki dipped 0.64 per cent over the quarter to $443,886, while Stratford values also dipped 1.35 per cent and the average home is worth $478,051.

QV property consultant, Danny Grace says New Plymouth district is more stable with improved levels of activity and interest over recent months, with more interest from buyers and agents feeling more confident.

Stratford and South Taranaki are also stabilising, but not to the same level as New Plymouth. “The quarterly gain in New Plymouth of 1.24 per cent shows improved sentiment fuelled mostly by the strength of first home buyer demand,” Grace says.

Hawke’s Bay

Napier City home values rose 0.97 per cent and were up 0.15 per cent in the year to April. The average value in the city is now $760,444.

Hastings values were also up 0.29 per cent but were down 2.24 per cent year-on-year. The average value in Hastings is now $773,595.

Wairoa saw values rise 2.21 per cent in the three months to April and 9.83 per cent year-on-year to a new average value of $414,919, while it was a different story in the central Hawke’s Bay district, which had the biggest drop down -4.25 per cent over the three months and -7.02 per cent year-on-year with an average value of $540,303.

Palmerston North

Home values in Palmerston North dipped 0.68 per cent over the past three months to a new average value of $634,094 which is 1.61 per cent lower than this time last year.

QV registered valuer, Olivia Betts says she is seeing increased sales activity, however prices remain stable.

Homes with older, outdated features are struggling to attract buyers and are often listed on the market for longer periods. In contrast, there’s been a growing demand for homes recently renovated, reflecting a preference for modern amenities.

Wellington

Residential property values have continued their downward trend in most parts of Wellington this quarter.

The region’s average home value dropped by 0.5 per cent to $837,745, which is 4.11 per cent lower than the same time last year.

Upper Hutt bucked the trend with average growth of 0.69 per cent, while, Wellington City (-0.69 per cent), Kapiti Coast (-0.01 per cent), Hutt City (-0.47 per cent) and Porirua (-0.21 per cent) all recorded small average home value losses.

QV senior consultant, David Cornford say stock remains at elevated levels and there has been a slight overall softening in values in recent months.

“There is adequate market activity, however the volume of stock on the market is making conditions challenging for vendors in some cases,” he says.

“Buyers have plenty of options and are not afraid to walk away from a property. Economic and employment uncertainty continues and we are seeing this reflected in a relatively soft market where buyers are taking a cautious approach.”

Nelson-Tasman-Marlborough

These three regions fared relatively well in April, with Nelson City and Tasman District recording three-month growth of 1.21 per cent and 2.16 per cent, respectively. Marlborough posted a slight increase of 0.82 per cent. The average value in Nelson is now $799,144, Tasman is $829,427, and Marlborough is $703,836.

QV Property Consultant, Craig Russel says in the Tasman and Nelson markets, demand for homes within the $500,000 to $800,000 price range is still strong, with multiple offers being a common occurrence.

“Pricing remains key, with accurate pricing required to avoid properties languishing on the market for an extended period, and with multiple price reductions.

“Although we have seen modest growth over recent months we are still facing economic headwinds, and with the quieter winter period approaching, it is likely that values will remain flat over the next few months.”

West Coast

April brought mixed results for the region with values down 2.60 per cent over the past three months, indicating recent volatility. However, annual growth remains at 1.87 per cent higher than the same time last year.

Average home values in Westland rose 0.27 per cent to $471,390. While they declined by 3.80 per cent to $375,858 in Buller and by 3.55 per cent to $445,433 in Grey.

Canterbury

The Christchurch city average home value rose slightly by 0.88 per cent to $776.636 and is now 1.35 per cent higher than a year ago.

Meanwhile home values in Hurunui rose 0.76 per cent to $645,875 but were down 0.89 per cent year on year, while Waimakariri values rose 0.52 per cent to an $721,149 which is 0.47 per cent higher than they were a year ago.

QV registered valuer Olivia Brownie says there has been more positive market movement for Christchurch City and the neighbouring districts. “We have seen slightly more activity over the previous month which can be attributed to more affordability and a slight reduction in the cost of borrowing.

“The market is seeing a balance in supply and demand, with buyers having a good range of options and sellers not expecting immediate price increases. Well-presented and located homes are transacting with buyers having the option to leave less appealing stock to the side or negotiating on price. Overall the market movement is minimal and we are seeing a somewhat steady property market.”

Dunedin

Values dipped slightly in Dunedin City by an average of -0.73 per cent over the past quarter, with Dunedin’s average home value now $646,378, which is just 0.04 per cent lower than the same time last year. Dunedin’s central suburbs had the greatest quarterly increase up 1.40 per cent.

QV Property Consultant Robin Graham says listing levels in Dunedin remain high when compared to the same period last year, with downsizing activity occurring within the owner occupier market.

“Demand levels remain firm for Mosgiel, followed by Maori Hill and Saint Clair, however agents continue to report that heightened levels of supply, mean vendor price points need to be realistic.

“Overall, property values in the region are flatlining, with only minor growth in isolated areas and softening sentiment in Dunedin among first home buyers and investors when compared to earlier in the year.”

Queenstown

Residential property values are continuing their slight downward trend across the Queenstown Lakes District.

The average home value reduced by 0.43 per cent over the past three months to $1,818,422. Home values in Queenstown are now -0.45 per cent lower on average than at the same time last year.

Southland

Invercargill values rose 0.21 per cent to top half a million, with an average value of $501,322, which is 4.01 per cent higher than the same time last year.

In Gore, values increased 3.15 per cent to $418,768, which is 0.22 per cent higher than a year ago. And in Southland values were up 1.88 per cent to $535,303, which is 6.56 per cent higher than a year ago.

QV registered valuer Andrew Ronald says the region’s affordability and consistent performance underpin buyer interest. “We are still experiencing strong demand from first home buyers seeking entry level properties, typically under $500,000.

“Investor activity continues to increase, although not at any significant levels yet. There is still limited demand for upper price bracket properties,” he says.