8 Jun 2009

Housing market seen as stabilising

4:52 pm on 8 June 2009

There are further signs the housing market is stabilising, with an improvement in property values over the past year, although they are still dropping.

Quotable Value says house prices fell 8.1% in the year to May, compared with a 9% fall in the year to April.

Senior property valuer Glenda Whitehead says lower mortgage rates have spurred investment in the market and the market appears to have improved over the past month.

Ms Whitehead says the housing market may have found a bottom - but it is too early to tell for sure. Tthere is a low level of listings, but there is still buyer interest.

Ms Whitehead says economic factors such as job security will determine when the market starts to recover.