Wellington recorded the largest quarterly decline since March 2023 with the average home value falling 3.5% to $878,001.<\/p>\n
QV national spokesperson Simon Petersen said the latest figures show buyers remain firmly in control heading into spring.<\/p>\n
\u201cBuyers have plenty of choice, they\u2019re taking their sweet time, they\u2019re negotiating hard, and they\u2019re prepared to walk away if the numbers don\u2019t stack up. That\u2019s putting downward pressure on property values,\u201d he said.<\/p>\n
Petersen said it was more of a slow deterioration rather than a sudden correction.<\/p>\n
\u201cThe market has been flat to gently falling for some time, and those smaller movements are now starting to add up in some parts of the country.\u201d<\/p>\n
He said while the overall direction is clear, the pace of change still varies considerably from place to place.<\/p>\n
Christchurch, one of the country\u2019s more resilient housing markets this year, slipped 0.5% \u2013 its first negative quarterly result in 11 months.<\/p>\n
Across the main urban areas, home values fell furthest this winter in Gisborne, down 5% over the three months to the end of August. Greymouth (-3.7%) and Hastings (-2.9%) also recorded larger-than-average declines.<\/p>\n
There were pockets of growth in the lower South Island, with Queenstown recording a 1% quarterly increase, while home values inched 0.1% higher on average in both Timaru and Invercargill.<\/p>\n
Petersen said the next few months would test whether the market had any real appetite to break out of its holding pattern.<\/p>\n
\u201cSpring usually brings more listings and more activity, but not necessarily more competition,\u201d he said.<\/p>\n
\u201cIf buyer confidence stays where it is, vendors may simply find themselves competing harder for the same pool of cautious purchasers.<\/p>\n
\u201cLast week\u2019s [Official Cash Rate] increase is another factor for buyers to weigh up, alongside the wider economic outlook. Household budgets are still under pressure, the election is getting closer, and buyers know they don\u2019t need to rush.\u201d<\/p>\n
Wellington recorded the largest quarterly decline since March 2023 with the average home value falling 3.5% to $878,001. Photo \/ 123rf<\/p>\n