The tide has turned on North Rodney house prices, which were heading for a million dollar average, but the market is still looking no brighter for first home buyer.
Last month the QV House Price Index showed average prices in the region had dropped for the first time since at least 2014 over a 12-month period, by a margin of 0.9 per cent.
In the three years prior to that decrease, prices skyrocketed an average of 14 per cent per year and were on their way to the million dollar mark.
They reached a record high of $994,136 in May last year, but that figure has since fallen to $977,649.
Hollis & Scholefield property valuation director Steve Jack says the market has levelled out since the start of last year and potential causes include tighter restrictions on bank loans and a change of government.
“A change to immigration policy by the Labour government inevitably affects the demand for property,” Steve says.
“Their recent announcement to end negative gearing next year will likely have an impact, too, on the number of properties being brought.”
He says demand will also drop as first home buyers are forced to look at property further afield.
“We are seeing a lot more people buy in areas such as Kaiwaka and Mangawhai because of the lack of affordability in North Rodney, where you won’t get much for less than $600,000.”
Steve predicts that the market will settle in its current position for a while, unless a big event occurs in the national or global markets.
“It’s not going to get any easier for people trying to get on the property ladder around here, however things often go in a 10-year cycle, so there could be a downturn at some point.”
Last time the area faced a financial crash, in 2008, property prices fell between 10 and 15 per cent. If something similar occurred now average prices in North Rodney would dip to around $830,000.
Despite a drop in values locally, neighbouring areas have seen the upward trend continue, with Hibiscus Coast values increasing 1 per cent over the last year and North Shore by 3 per cent.