Properties rise, but not by much | Bay of Plenty News | Local News in Bay of Plenty

Tauranga's house prices are remaining stagnant in a residential property market that continues to trail a nationwide trend of rising values.

For the year ending January, values in Tauranga have risen 1.1 per cent but are still 10.9 per cent below the 2007 market peak, according to the latest QV Valuations figures.

The average sale price for Tauranga - calculated over the past three months - was $392,814 compared with $400,041 in January last year. Shayne Donovan-Grammer, QV valuer in Tauranga, said values here have been increasing very gradually over the past year. "There has been a good level of activity in the market lately but prices have remained stagnant."

Auckland's market continues to underpin the nationwide improvement in values, which are 2.7 per cent ahead of the same time a year ago.

National property values rose 1.1 per cent in the three months ended January 31, and are now 3.3 per cent below the previous market peak in late 2007, QV said.

That national gain has come from rising values in Auckland, which are up 5.1 per cent on the same time in 2011, and are above the 2007 peak by 1.9 per cent.

Provincial centres struggled in the three-month period, with urban and rural areas registering gains.

"The increase in values in many areas, particularly central Auckland, can in part be attributed to a lack of supply, with a shortage of desirable and well-presented properties for sale," said QV research director Jonno Ingerson. "When quality properties come up for sale in these areas, they are in high demand, which is tending to push the price up."

The number of house sales climbed by a fifth in December from a year earlier, according to Real Estate Institute figures last month, though the number of homes on the market remains low by historical standards.

The market has spent much of the last year in decline as households avoid taking on new debt to buy property, instead using low interest rates to repay outstanding bank loans.

Mr Ingerson said market activity has picked up since the start of the year, though "potential buyers remain cautious and calculated and are often unwilling to commit quickly".

Auckland's average sale price in the three months ending January rose to $610,760, from $597,032 in December. Wellington city property values were 0.3 per cent higher through the 12 months ending January, and have recovered most of their losses since the middle of 2011. The average three-month sale price rose to $500,063, from $483,160 a month earlier.

Christchurch property values were 3.7 per cent above the same month a year ago, with the average sale price at $377,040, up from $371,885.