{"id":49837,"date":"2025-08-07T07:31:12","date_gmt":"2025-08-07T07:31:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/49837\/"},"modified":"2025-08-07T07:31:12","modified_gmt":"2025-08-07T07:31:12","slug":"new-zealands-slow-motion-house-price-crash","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/49837\/","title":{"rendered":"New Zealand&#8217;s &#8216;slow motion&#8217; house price crash"},"content":{"rendered":"<p>The latest data from the Real Estate Institute of New Zealand (REINZ) showed that house prices nationally have fallen by 16.4% over 44 months, with all major centres experiencing heavy declines.<\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/3X4bE-new-zealand-housing-prices-since-peak.png\"\/><\/p>\n<p>As illustrated below by Justin Fabo from <a href=\"https:\/\/www.antipodeanmacro.com\/\" rel=\"nofollow noopener\" target=\"_blank\">Antipodean Macro<\/a>, home prices in real terms have crashed back to 2019 levels.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-Real-house-prices.png\" width=\"660\" height=\"555\" decoding=\"async\" loading=\"lazy\" alt=\"NZ real house prices\"\/><\/p>\n<p>Advertisement<\/p>\n<p>Cotality released its house price results for July, which showed that values nationally declined by 0.2% over the month to be down 0.4% year-on-year.<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-dwelling-values.png\" width=\"660\" height=\"212\" decoding=\"async\" loading=\"lazy\" alt=\"NZ house prices results\"\/><\/p>\n<p class=\"wp-caption-text\">Source: Cotality<\/p>\n<p>Values nationally have declined 16.6% from their peak, led by a 21.7% decline in Auckland and a 24.7% fall in Wellington.<\/p>\n<p>Advertisement<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-median-property-values.png\" width=\"660\" height=\"331\" decoding=\"async\" loading=\"lazy\" alt=\"NZ property values\"\/><\/p>\n<p class=\"wp-caption-text\">Source: Cotality<\/p>\n<p>Cotality NZ Chief Property Economist Kelvin Davidson said that the market was being held down by \u201cjob market uncertainty\u201d, which has more than offset \u201cthe upwards influence on house prices from lower mortgage rates\u201d.<\/p>\n<p>The upshot is that New Zealand housing is becoming rapidly more affordable.<\/p>\n<p>Advertisement<\/p>\n<p>As illustrated below by Fabo, New Zealand\u2019s median house-price-to-income ratio has fallen to decade lows:<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-house-price-to-income-ratio.png\" width=\"660\" height=\"576\" decoding=\"async\" loading=\"lazy\" alt=\"House price to income ratios\"\/><\/p>\n<p>Mortgage repayment affordability has also fallen to a decade low:<\/p>\n<p>Advertisement<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-mortgage-affordability.png\" width=\"660\" height=\"582\" decoding=\"async\" loading=\"lazy\" alt=\"Mortgage rate affordability\"\/><\/p>\n<p>Meanwhile, the rental market has also become more affordable, partly reflecting the collapse in net overseas migration to 2.5-year lows:<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-net-migration.png\" width=\"621\" height=\"496\" decoding=\"async\" loading=\"lazy\" alt=\"NZ net migration\"\/><\/p>\n<p>Advertisement<\/p>\n<p>Both CPI rental inflation and actual rents have collapsed:<\/p>\n<p><img src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/08\/NZ-rents.png\" width=\"660\" height=\"472\" decoding=\"async\" loading=\"lazy\" alt=\"NZ rents\"\/><\/p>\n<p class=\"wp-caption-text\">Source: Cotality<\/p>\n<p>As a result, New Zealand housing is becoming rapidly more affordable\u2014both to purchase and rent.<\/p>\n<p>It\u2019s a shame Australia has not followed a similar path.<\/p>\n<p>Advertisement<\/p>\n","protected":false},"excerpt":{"rendered":"The latest data from the Real Estate Institute of New Zealand (REINZ) showed that house prices nationally have&hellip;\n","protected":false},"author":2,"featured_media":49838,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-49837","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/49837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=49837"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/49837\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/49838"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=49837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=49837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=49837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}