First-home buyers looking to make the next step up the ladder could struggle - despite making huge gains in value on their property.
The latest monthly statistics from Quotable Value (QV) show all areas of Auckland saw home values increase over the past three months.
QV valuer Bruce Wiggins said values were rising but the rate of growth had slowed. A number of factors could have contributed to this, he said, including the traditional winter effect and the focus on the election.
The Auckland region saw residential property values increase by 1.8 per cent over the past three months and 10.3 per cent year-on-year.
The buoyant property market meant those who managed to buy their first home in the past three or four years would have made considerable gains. "For example, a home bought three years ago in the $400,000s could now be sold for around $700,000," Mr Wiggins said.
However, the rising market meant properties in the next price bracket had also increased in value.
That meant that despite seeing the value of their home rocket, upgrading to a larger home in a similar area could be difficult.
"The next step could be around $1 million and for some this may be a step too far in terms of required borrowing," he said.
"Agents have been saying they can't get listings for one reason or another ... this may be one of the factors. Some people might be saying, 'we are happy where we are, maybe we will renovate and add that extra room if we need it'."
Real Estate Institute head Helen O'Sullivan said those selling to upgrade in a similar area would often find it tough. "If you sell the house that you are in today, the house next door has probably got a similar value, so you don't get further ahead."
The relatively cheaper houses in what used to be considered fringe suburbs like Meadowbank and Ellerslie had seen the biggest gains in terms of percentages.
"Those suburbs tend to gain and catch up with some of their more expensive inner-city rivals.
"However, areas like Westmere and Ponsonby and Herne Bay are continuing to increase."
Residential property values in Hamilton City decreased by 0.9 per cent over the past three months, but are up 2.7 per cent year on year.
- By Nicholas Jones of the New Zealand Herald
