The average value of all homes in the Auckland region was $1,041,957 in August, down from $1,044,303 in July and $1,045,059 in June, suggesting property prices are slowly deflating following the decline in volume of homes sold, according to Quotable Value.

A report from interest.co.nz said that most parts of Auckland are affected by the decline, including Rodney, North Shore, Waitakere, Papakura and Franklin with average value of home falling for at least two months in a row.

In August, average value in Central Auckland dropped, while in Manukau average value rose, but remained below the June level.

In the Wellington region the average value of all homes fell two months in a row, down to $605,435 from $609,552 last month, while the average value of Christchurch homes dropped to $493,069 from $496,378 in June.

“Quarterly value growth has dropped across the Auckland and Wellington regions but values rose in most other parts of the North Island including Hamilton and Tauranga," QV national spokesperson Andrea Rush told interest.co.nz.

“Value growth is particularly strong in the Hawke's Bay, South Wairarapa and Masterton markets, which continue to benefit from those moving out of Auckland and Wellington looking for more affordable housing and better lifestyles.

“Values are flat or decreasing in most parts of Christchurch, while Dunedin value growth has slowed to 0.5% over the past quarter,” Rush said.

Source: NZAdviseronline.co.nz