Average house values have decreased nationally, with Wellington declining at double the average rate according to according the latest Quotable Value (QV) house price index.
The September report showed the average home value decrease by 0.4% last month and by 1.6% in the September quarter, compared to a 0.5% monthly decline and a 2% quarterly decline in August.
The national average house price was now $901,920, which was 0.3% higher than the same time last year.
The latest data also showed that home values have continued to slowly level out across much of the country in the September quarter, with the average three-month rolling rate of reduction slowing in Auckland (-1.7%), Christchurch (-0.8%), Hamilton (-1.2%), Dunedin (-0.8%) and most of the other main urban areas around the country.
The most notable exception was Wellington, where home values had reduced at twice the national average rate.
The Wellington region's average home value has reduced by an average of 3.2% in the September quarter — a slightly higher rate of reduction than the 3% decline reported for the August quarter.
QV operations manager James Wilson said interest rates had started to come down, bringing a "sentiment shift across much of the country".
"There seems to be a spreading expectation that interest rates can only go one way, and so we're seeing more people at open homes, in auction rooms, and browsing for property online," he said.
"It certainly seems like a general uplift in property values is now on the horizon, but despite growing confidence and optimism that we're through the worst of it, the conditions aren't yet conducive to growth."
Wilson said the cost of borrowing still remained relatively high as cost of living and job security woes bite — especially in Wellington.
However, he expected that balance to slowly shift over the coming months — particularly if interest rates continued to fall.
"All eyes will be on the Reserve Bank's October announcement. If the Official Cash Rate drops again, as many are expecting it to, it will reinforce the growing perception that now is a decent time to become reacquainted with the property market."
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