Properties that are well-maintained and in sought-after locations are still selling well, valuers say.

House price growth has dropped below 10 per cent a year for the first time in two years.



QV's latest data shows that property values nationwide increased 9.7 per cent in the year to May, to an average $634,018.



In Auckland, values were up 9.3 per cent year-on-year, the slowest rate of growth since November 2014. They moved just 0.1 per cent over the quarter.

QV spokeswoman Andrea Rush said value growth had eased as the latest round of loan-to-value restrictions combined with tougher lending criteria from banks and the normally slower winter period.

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TESS BRUNTON/FAIRFAX NZ Rotorua is one of the provincial areas still experiencing strong price growth.

"Sales volumes are lower than they were this time last year particularly in Auckland and its possible market activity may now remain more subdued until after the election," she said.

QV Auckland Homevalue manager James Steele said record prices were still being achieved for well-positioned and well-maintained properties but, for other properties, sellers sometimes had to settle for a lower price than they might have achieved last year.

"We are also seeing vendors who are willing to withdraw their properties from the market if they do not achieve the price offer they are wanting," he said.



"Entry-level homes in South Auckland suburbs such as Mangere, Papakura and Manurewa where you can still find a property for under $650,000 are being sold mostly to first-home buyers with investors no longer very active in this part of the market."



Rush said value growth was stronger in Wellington, at more than 20 per cent year-on-year, and Dunedin, than in the other main centres but was starting to ease. The capital's values increased 3.1 per cent in the quarter.

CHRIS GORMAN/STUFF Auckland's housing market has lost much of its heat.

Auckland and Hamilton had only seen slight value growth over the past three months and values dropped in Christchurch. Hamilton valuer Stephen Hare said there was still more demand than supply for entry-level properties.

In Wellington, valuer David Cornford said the market was still buoyant but there were signs it was losing steam.

He said properties with undesirable features were sitting on the market for longer. Some properties were selling after second-attempt campaigns when auctions had failed and some people were withdrawing from the market when they could not get the price they wanted.

"Investors are still in the market however quite a number of them are still struggling to secure finance since the introduction of LVR restrictions last year," he said.



"Value growth has slowed to 3.1 per cent per quarter; this is less than 2016 where some quarter's recorded growth of 6 per cent to 7 per cent."

Rush said it was regional North Island centres such as Whangarei, Rotorua, Hawke's Bay and Kaipara that had some of the strongest price growth.Tauranga is also showing stronger quarterly growth than last month but Rush said the frenzy had left the market there.

"The only North Island areas to see values decrease over the past three months were some parts of Auckland; Hamilton's North Eastern suburbs and New Plymouth," she said.



"In the South Island, there's been positive value growth across most areas and values have begun accelerating in the Tasman District while strong growth continues in the MacKenzie and Central Otago Districts. The only areas to see values decrease over the past three months were the Buller District on the West Coast, and parts of Christchurch; the Waimate District and the Clutha District."

Property listings website Realestate.co.nz also recorded a slowdown. It said the number of houses available for sale was up 50.8 per cent compared to last May.

"More properties sitting on the market means more choice for potential home buyers and, with asking prices relatively static, it's a real lift for house hunters," said Realestate.co.nz spokeswoman Vanessa Taylor.

"We first saw an increase in Auckland housing stock in August 2016, which was the beginning of the slowing in this market. The cumulative effect means that potential buyers are more likely to be able to find a house they want, with more choices on offer and less competitive pressure than we saw in 2016."

Wellington and Canterbury also recorded an increase in housing stock in May, compared to the same period last year, at 13.2 per cent and 4.1 per cent respectively.

The remaining 14 New Zealand regions all experienced a fall in housing stock compared to May 2016.