Auckland values are down almost 3 percent year-on-year and Wellington down 4 percent. Photo: RNZ
First-home buyers have a "rare opportunity" to get into the housing market, Quotable Value says.
The property data firm said values rose 0.1 percent nationwide in the three months to April, but were still 1.33 percent below a year earlier.
Auckland was down 2.89 percent year-on-year and Wellington down 4.11 percent year-on-year.
Operations manager James Wilson said the more recent data seemed to show a shift in sentiment and some stabilisation in prices.
"Although interest rates are trending down, demand is tempered by cautious buyer sentiment and a large supply of properties," he said. "Still, signs of a turnaround are emerging, especially in the main centres."
He said, normally, falling interest rates would relatively quickly result in prices rising.
"However, at the moment, the supply of listings is still high and there is still a cautious mindset among many buyers."
He said, for first-home buyers, especially in parts of Auckland where houses were selling in the $700,000s in some places, it was a good time to act.
Auckland valuer Hugh Robson said first-home buyers often purchased in townhouse developments.
In Wellington, senior consultant David Cornford said levels were at elevated levels, which was putting pressure on prices.
"There is adequate market activity, however the volume of stock on the market is making conditions challenging for vendors in some cases," he said.
"Buyers have plenty of options currently and are not afraid to walk away from a property. Economic and employment uncertainty continues, and we are seeing this reflected in a relatively soft market, where buyers are taking a cautious approach."
Christchurch prices were bucking the trend, up 1.35 percent by QV's measure year-on-year and 0.88 percent in the quarter.
"The market is currently seeing a balance in supply and demand, with buyers having a good range of options and sellers not expecting immediate price increases," valuer Olivia Brownie said.
"Well-presented and located homes are transacting with buyers having the option to leave less appealing stock to the side or negotiating on price. Overall, the market movement is minimal and we are seeing a somewhat steady property market," .
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