Average house values have dipped slightly in the June quarter, down 0.3% to an average value of $910,479.
The June quarter period runs from April 1 to June 30.
In the latest QV House Price Index, QV said values in the main centres have softened under high stock levels and cautious buyer sentiment, but some regions have had significant gains.
The average home value is -0.6% lower than last year, and -14.5% lower than its peak in late 2021.
Average house prices lifted in Queenstown (1.9%), Invercargill (1.6%), Whangarei (0.3%), and Hamilton (0.5%). They remained steady in Tauranga (0.1%), and Christchurch (0.1%), and dropped in Auckland (-1%), Wellington (-2.3%), and Dunedin (-1.5%).
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QV national spokesperson Andrea Rush said buyers were taking advantage of easing interest rates as well as increased choice in the market.
First-home buyers and owner-occupiers remained the most active, particularly in the lower to mid-value areas where affordability was in reach, she said.
Regions moving in different directions
“Regional divergence is becoming more evident, with more affordable markets recording notable quarterly gains such as the Far North (5.8%), Wairoa (12.6%), Waitomo (5.2%), Buller (6.2%) and Gore (8.8%), while others continue to track lower due to economic uncertainty and a cautious buyer pool,” Rush said.
She noted that falling interest rates were easing affordability pressures.
The Reserve Bank would be reviewing the OCR this week, with some expecting a 0.25% cut, although many predicted it would hold at 3.25%.
“Some buyers may be anticipating lower rates, with bank activity back to mid-2022 levels after the market peak,” Rush said.
“However, it’s unclear how much of this reflects new purchases versus refinancing.
“Ongoing global conflict, economic uncertainty, and rising living costs are likely to limit any significant upswing in the near term.”
