Average home values across New Zealand have fallen by 13.1% since the housing market peaked in late 2021, according to the latest QV House Price Index, 1News reports.
The national average now sits at $909,671, down from $1,047,132 at the height of the boom. Over the three months to the end of July, prices decreased by 0.5%, with values remaining largely unchanged compared to the same period last year.
Major centres continued to record declines this quarter, Auckland fell by 1.2%, Wellington by 2.3%, and Dunedin by 1.5%. However, some markets bucked the downward trend. Tauranga values rose 1.7%, Queenstown climbed 2.4%, and Invercargill gained 1.2%, while Whangārei and Christchurch were steady at 0% and 0.2% respectively.
According to 1News, QV national spokesperson Andrea Rush said the market was still adjusting to a softer economic climate, with buyers closely weighing affordability, job security, and mortgage servicing costs.
“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,” reports 1News.
Rush noted that conditions varied across the country, with some regional centres seeing renewed value growth after earlier declines, driven by demand for affordable housing.
“While national value levels have broadly stabilised, the recovery is uneven and fragile,” she said. “Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty.”
She added that the traditional spring uplift in the coming months would be “pivotal” in determining whether the market shifts more decisively towards recovery.