3 Apr 2019

House price growth continues to cool

6:33 am on 3 April 2019

Growth in New Zealand's property prices continues to cool, as prices fall in Auckland and rise at a slower rate in the regions.

House for sale in Upper Hutt.

Photo: RNZ / Alexander Robertson

Quotable Value's monthly House Price Index was up by 2.6 percent in the year to March, and by 0.5 percent for the quarter.

This time last year, annual growth was at 7.3 percent.

The national average house price in the quarter was $686,523, rising from $682,938 in February.

Prices fell the most in Whangarei and Auckland and increased most in Rotorua and Napier.

QV general manager David Nagel said he expected growth to slow further.

"Affordability constraints are a key factor behind this slowdown.

"We are expecting more of the same over the coming months."

Mr Nagel said loan-to-value restructions had kept the lid on growth, which was positive for first home buyers.

He said an increase in buyer demand was likely, with the Reserve Bank indicating it was likely to cut wholesale interest rates soon.

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