RPT-NZ house value growth eases further in January

WELLINGTON, Feb 11 (Reuters) - New Zealand house prices grew at their slowest annual rate in a year in January as a cooling of the robust residential market gathered pace, government agency Quotable Value (QV) said on Monday.

QV's residential house price index rose 8.9 percent in the month from a year earlier, compared with 10 percent in December. It was the fifth month in a row that the annual growth rate has fallen.

The government agency said house prices have slowed rapidly in the past few months because of higher interest rates and slowing immigration.

"If the easing continues we would expect to see growth flatten to the point where there is no annual gain in value," QV spokesman Blue Hancock said in a statement.

"There are increasing reports from our valuers of properties going to mortgagee sale (sale by the mortgage lender), with the number of these sales likely to increase as the year progresses."

The Reserve Bank of New Zealand (RBNZ) raised its cash rate by a total of 100 basis points to 8.25 percent last year on concerns about strong domestic spending, particularly in the housing market.

The latest Reuters poll has most of the 15 economists surveyed expecting no change to rates before late 2008.

The annual rate of increase for Auckland, the biggest population and commercial centre, eased to 7.9 percent from 9.1 percent in December, while house value growth in the capital Wellington eased to 10.6 percent growth from 11.4 percent.

The South Island's main city, Christchurch, slowed to 6.9 percent from 8.2 percent. Growth rates in most provincial cities also eased.