House values in New Zealand remain largely flat, according to new data from QV, with the average home worth 0.3% less than at the start of 2024.
QV operations manager James Wilson said, despite interest rate relief, the housing market remains largely flat “with essentially no growth to speak of during the month of October itself – neither up nor down”.
“Home values have flattened out again after some more sizeable yet still relatively modest reductions throughout the winter months, but they are still showing no signs of taking off anytime soon.”
The October QV House Price Index showed the average home value decreased nationally by an average of 0.8% throughout the three months to the end of October.
This figure was smaller than the 1.6% average decline in the three months to the end of September, and 2% in the three months to the end of August.
Data showed that home values continued to slowly level out across most main urban areas, with the average three-month rolling rate of reduction slowing in Auckland (-0.8%), Christchurch (-0.2%), Hamilton (-0.6%), Tauranga (-1.6%), Dunedin (-0.1%) and other areas.
Wilson said heightened job insecurity was also being more keenly felt in the capital, as Wellington’s average rate of home value decline slowed from 3.2% to 2.3% this quarter.
The average New Zealand house value was now $902,231, which is 0.3% ($2839) less than at the start of this year.
Wilson said the impact from rate relief would “still take some time to phase through” and be fully felt by homeowners.
Are we ‘through the worst’ yet?
“There has been a notable mindset shift in recent times that ‘we’re probably through the worst of it now’, and that interest rates are going to continue to reduce. But this is being balanced out with a high level of stock available for purchase on the market, which is helping to keep prices down, as well as rising unemployment — which is still a very real concern for many,” Wilson said.
“In the meantime, active interest in the real estate market continues to grow. First-home buyers are still the most active buyer group today, but investors are slowly coming out of the woodwork again, as are owner-occupiers who have been waiting for conditions to improve.”
