{"id":185609,"date":"2025-12-16T00:11:08","date_gmt":"2025-12-16T00:11:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/185609\/"},"modified":"2025-12-16T00:11:08","modified_gmt":"2025-12-16T00:11:08","slug":"real-new-zealand-house-values-down-31-3-since-2021-peak-economists-cite-renewed-weakness","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/185609\/","title":{"rendered":"Real New Zealand house values down 31.3% since 2021 peak, economists cite \u2018renewed weakness\u2019"},"content":{"rendered":"

ANZ<\/a> economists said: \u201cSales volumes are back below their long-run historic[al] average for this time of year\u201d, referring to a lack of bounce from spring.<\/p>\n

November\u2019s activity had been weaker than the economists had expected.<\/p>\n

Things could worsen for those hoping prices will rise.<\/p>\n

\u201cRenewed weakness in the housing market and the sharp increase in wholesale interest rates since the November Monetary Policy Statement [from the Reserve Bank] presents some downside risk to house prices,\u201d ANZ said.<\/p>\n

\"SatishSatish Ranchhod, senior economist at Westpac Bank. Photo \/ NZME<\/p>\n

Westpac<\/a> senior economist Satish Ranchhod said the housing market had hit an air pocket in November, with sales dropping and prices nudging down.<\/p>\n

The overall trend in the market remains flat.<\/p>\n

Nationally, a mixed picture emerged.<\/p>\n

\u201cThere\u2019s been particular softness in prices in Auckland, down 1.5% over the past year and Wellington down 2.8%,\u201d he said.<\/p>\n

In contrast, Canterbury, Otago and Southland had all seen gains of around 2% to 4% over the past year, with many other regions recording modest gains, Ranchhod said.<\/p>\n

The sluggishness in the market was notable, given the sharp falls in borrowing costs during the past year.<\/p>\n

However, those falls have occurred at the same time as we\u2019ve seen a large increase in the number of properties for sale.<\/p>\n

Adjusting for normal seasonal trends, the number of homes available for sale is at its highest level in a decade, Ranchhod found.<\/p>\n

Relatively firm levels of building were being recorded, including large numbers of townhouses and other medium-density dwellings.<\/p>\n

That was happening at the same time as population growth had slowed, Ranchhod said.<\/p>\n

In August, the Herald\u2019s Liam Dann said<\/a> this country was not experiencing a housing market meltdown but a full-blown crash.<\/p>\n

The property market in Auckland and Wellington was experiencing one of its worst slumps, with values significantly below the 2022 peak, based on QV data, Dann wrote.<\/p>\n

Auckland home values were 19.7% below the peak, while Wellington\u2019s were 27.3% lower.<\/p>\n

The downturn had impacted consumer confidence and the economy, particularly affecting property-related services in Auckland.<\/p>\n

Christchurch city\u2019s average home values were just 0.2% lower than the nationwide peak. Prices in those other regions were actually above the nationwide peak in 2022.<\/p>\n

Anne Gibson<\/a> has been the Herald\u2018s property editor for 25 years, written books and covered property extensively here and overseas.<\/p>\n

Stay ahead with the latest market moves, corporate updates, and economic insights by subscribing to our Business newsletter<\/a> \u2013 your essential weekly round-up of all the business news you need.<\/p>\n","protected":false},"excerpt":{"rendered":"ANZ economists said: \u201cSales volumes are back below their long-run historic[al] average for this time of year\u201d, referring…\n","protected":false},"author":2,"featured_media":185610,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[13991,117139,3225,117141,117140,36173,6097,13488,3592,10938,10053,100625,4507,225,70933,117,111,43,139,69,13028,6115,30248,1133,7811,39545,9342,23964,55365,80],"class_list":["post-185609","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-13991","tag-117139","tag-according","tag-calculations","tag-cite","tag-continuing","tag-down","tag-economists","tag-fall","tag-herald","tag-house","tag-inflationadjusted","tag-late","tag-market","tag-nationally","tag-new","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-peak","tag-real","tag-renewed","tag-sale","tag-since","tag-terms","tag-values","tag-volumes","tag-weakness","tag-zealand"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/185609","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=185609"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/185609\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/185610"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=185609"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=185609"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=185609"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}