Average home values across New Zealand have dropped by 13.1% since the market peaked in late 2021, according to the latest QV House Price Index.
The national average now sits at $909,671, down from $1,047,132 at the height of the boom.
The latest quarterly data showed a 0.5% decline in value over the three months to the end of the July with prices largely flat compared to the same time last year.
Major centres including Auckland (-1.2%), Wellington (-2.3%) and Dunedin (-1.5%) saw further drops this quarter, but some cities bucked the trend, with Tauranga (1.7%), Queenstown (2.4%) and Invercargill (1.2%) posting modest gains.
Whangārei and Christchurch remained steady at 0% and 0.2% respectively.
QV national spokesperson Andrea Rush said the market continued to adjust to a softer economic climate with buyers weighing affordability, job security, and mortgage servicing costs before making a purchase.
The morning’s headlines in 90 seconds, including the legal fight to get a New Zealand woman and her child out of US immigration detention, sliding house prices, and Taylor Swift’s big reveal. (Source: 1News)
“There’s more activity occurring at the lower to mid-value end of the market, where first-home buyers and owner-occupiers remain the most engaged,” she said.
“These buyers are being supported by relatively stable interest rates, improving access to finance, and a wide range of listings, particularly in larger urban centres.”
Rush said market conditions continued to vary by location and property type.
Some regional centres were experiencing renewed value growth off the back of earlier declines and ongoing demand for affordable housing, she added.
“While national value levels have broadly stabilised, the recovery is uneven and fragile.
“Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty.”
The next few months with the traditional spring uplift would be “pivotal” in determining a more decisive tilt towards recovery, Rush said.
