The housing market slump deepened in August as values continued to decline, according to the latest figures from QV.
New Zealand’s average dwelling value declined by 0.8% over the three months to the end of August, according to the QV House Price Index. It’s now 13.4% lower than the January 2022 peak in market values.
The biggest decline in the three months to August was in was in Nelson -3.2%, followed by Wellington City -2.4%, Whangarei -1.8%, Napier -1.8%, Auckland -1.4%, Hamilton -1.2%, Christchurch -1.2%, Dunedin -0.7% and Palmerston North -0.6%.
Going against the trend, value gains were recorded in Queenstown up 2.5%, Hastings up 1.7%, Invercargill up 0.4%, Tauranga up 0.3% and New Plymouth up 0.1%.
“As we head into spring, the housing market remains subdued, with values continuing to decrease in most parts of the country,” QV national spokesperson Andrea Rush said.
“The slump is most pronounced in Wellington, where values are now close to 30% below their peak, and in Auckland which is down around 20% – underscoring the scale of the correction since early 2022,” she said.
However, the slump could be good news for first home buyers.
“With home values coming down and interest rates beginning to ease, affordability is slowly improving for buyers in many areas, however higher living costs, rising unemployment, the broader economic downturn and stretched household budgets continue to restrict demand, ” Rush said.
“A steady flow of new townhouse and apartment completions are giving buyers greater choice and helping to limit upward pressure on prices,” she said.
“Buyers are taking longer to commit and sellers are increasingly having to meet the market – agents report some home owners are struggling to sell in time to secure their next property, leading to more deals falling through,” she said.
