Nelson property

PHOTO:JOHN BISSET/STUFF People selling their homes could be in for a rude awakening, as asking prices continue to rise amid warnings the housing market is “teetering on a cliff’s edge”.

Nelson house prices are not showing the signs of fragility highlighted in a report which warns New Zealand’s property market is “teetering on a cliff’s edge”, local real estate agents say.

The QV House Price Index report released on Tuesday said a disconnect was developing between vendors’ and purchasers’ expectations, suggesting the market was “on the brink of a material decline for the first time in nearly 12 years”.

QV House Price Index

Property market ‘on the brink’

The average value of a home in Nelson rose 0.7 per cent to $658, 374 in the three months to May, compared to 2.4 per cent nationwide, to $739,539, the report showed.

But QV General Manager David Nagel said the data didn’t properly reflect the drop in sales volumes during lockdown, because it was skewed towards much higher volumes in March.