CoreLogic says housing market shifting in favour of buyers as average values start to slide

Property data company CoreLogic says the housing market weakened further in March as market power shifts further towards buyers.

According to CoreLogic's House Price Index for March, each of the main centres recorded either a reduction in the rate of growth of average housing values, or an outright decline in average values compared to February.

The most significant declines were in Hamilton, where the average dwelling value was $891,884 in March (Feb $900,294), Rotorua $725,385 (Feb $741,098), throughout the Wellington Region $1,128,708 (Feb $1,138,210), Christchurch $757,902 (Feb $759,591), and Dunedin $698,879 (Feb $707,887).

"After such a significant upswing in values, some of the areas which saw the greatest deterioration in affordability are now also at risk of the greatest vulnerability," CoreLogic Head of Research Nick Goodall said.

"The impact of tightening credit and increasing interest rates has reduced the pool of buyers who are willing and able to pay recent prices and this has led to a reduced number of property transactions.

"Preliminary sales figures for March suggest the month should end with roughly 7000 to 7500 sales once the full population of transactions flows through.

"This would be a lift on February, which is seasonally normal, but about 10% to 20% below the long term average for March.

"As properties stay on the market for longer and expectations of weaker conditions ahead grow, buyers are finding themselves in a stronger negotiating position, with more time and leverage than at any stage in the last couple of years."

"Stories of 'bargain hunters' and 'cheeky offers' are becoming more prevalent."

"This switch of power to the buyers came sooner than most were expecting and will vary around the country," Goodall said.

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