Wellington Property Stabilises - great for Levin Property Values

QV reports the following trends in Wellington
Property values in the Wellington region declined by 7.4% over the past year (calculated over the three months ending May 2009 in comparison to the same period last year), an improvement on the 8.5% annual decline reported in April. The average sale price for the region remained relatively steady at $424,411.
"From these latest figures it is obvious that the encouraging signs we have seen in the market place over the last couple of months have had a positive affect on values in and around Wellington. Increased buyer interest and enquiry was followed by increased sales volumes, which has now translated into healthier prices. It is of course impossible to tell at this stage whether this is an actual house market recovery in Wellington, or if we will see further falls through winter," QV's Kerry Buckeridge said.
"Of particular interest at the moment is the shortage of listings throughout the Wellington region, which is obviously lending a hand to sale prices. The shortage can anecdotally be attributed to a few factors. Firstly, the pricing gap between the unrealistic sellers of last year and the cheeky buyers of late has all but closed. Pricing expectations are now clearer for buyers and sellers, ultimately resulting in listings being sold. Secondly, there is uncertainty in the market place, so vendors who don't have to sell won't. Lower interest rates are obviously having an affect too, as housing affordability has improved and is bringing first home buyers into the market. It is also worth noting that housing supply traditionally dwindles coming into winter," Buckeridge said.
"More established investors are certainly making a comeback, as the prospect of positive returns is back on the cards. It seems that savvy investors with portfolios are leading the pack, as they are more likely to meet bank lending requirements. For this group of buyers the numbers really have to stack-up. Capital gains aren't too high on the agenda, so rental returns need to make any potential outlay feasible,". Buckeridge said.

How does this apply to Levin? Well as a provincial town we are affected by the trends in our closest Metropolitan centres - Palmerston North and Wellington. As the shortage of listings is seen in both centres -this creates shortages of stock and buyers search in wider areas.
The short and sweet is - shortages in Wellington and Plamerston North helps lift prices and makes people look towards more affordable buying in places like Levin where the affordability is significantly stronger.