Vendors may need to adjust their expectations, says QV chief

New Quotable Value data showed national home values dipped 0.3 per cent in the last three months.

QV general manager, David Nagel said the market plateau had forced some vendors to adjust expectations on price.

"After a sustained period of national value growth, sellers can sometimes have an inflated – even unrealistic - view of the value of their property," he said.

"This is resulting in slower than usual average time to sell properties across some areas."

Yet despite last quarter's slowdown, national prices still jumped 5.7 per cent when compared to June last year to hit an average value of $675,680, according to QV.

In the Auckland region, home values climbed 0.8 per cent year-on-year, but fell 0.2 per cent in the last quarter from April 1 till June 30.

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QV Auckland senior consultant James Steele said it was no surprise values had remained flat because tougher lending restrictions and new Government regulations had dampened investor demand.

"We're continuing to see a high proportion of properties come to market as price by negotiation as opposed to auction," he said.

"With less demand, sellers are adjusting expectations and are more open to negotiation in order to get their property sold."

Tauranga home values, meanwhile, rose 1.9 per cent in the year to June 30 but dropped 0.9 per cent in the last quarter.

Wellington values rose 4.8 per cent annually but dropped 0.8 per cent in the last three months, while Christchurch prices rose 0.1 per cent in the last quarter.

Napier values rose 15.7 per cent year on year and 3 per cent in the past three months but price hopes there have been unrealistic according to QV's property consultant in that area, Nicola Waldon.

"We're seeing many properties being re-listed with asking prices or specifying a minimum price offer," she said.

"Our data supports this, with the average time taken to sell increasing compared to recent years."