Housing values in Lower Hutt's Wainuiomata has rocketed in recent years Photo: Supplied/ Dan Bailey
The value of cheaper houses has fallen more than those at the top rung of the property ladder, as more first time buyers become home owners.
The QV Quartile Index which tracks the value movements of the 25 percent most and least expensive houses in the main centres found those at the bottom end of the ladder had dropped an average of nearly 15 percent, versus those at the high end with an average drop of 12 percent.
"These results are supported by analysis of buyer activity, which reveals that more first-home buyers have been active in many areas compared to investors and owner occupiers, who have taken a more cautious 'wait and see' approach as the downturn has progressed," QV operations manager James Wilson said.
This had the effect of 'skewing' value levels in most areas downward, as a greater number of lower price sales were represented in sales volume, he said.
"First-home buyers typically target entry-level stock, much of which is priced in the lower quartile bracket.
"We would expect that when investors do eventually re-enter the market again, competition for entry-level stock will increase along with values.
"It is important to note that sales volumes are still extremely suppressed, which can make longer term trends more difficult to determine."