Property values across the country dropped again during December, according to new CoreLogic numbers, but there could be signs “the floor for property values could be within reach”.
Property values across New Zealand fell by -0.2% in December 2024, marking the ninth drop in the past 10 months.
The latest figures from CoreLogic’s hedomic Home Value Index indicate property values across New Zealand fell by -0.2% in December 2024, marking the ninth drop in the past 10 months.
The national median house value now sat at $803,624, which was 3.9% lower than a year ago and equivalent to a drop of around $32,200.
The latest index found New Zealand home values were still 17.6% below the post-Covid peak, although 16.2% higher than levels from March 2020.
Around the main centres, a slightly more consistent picture was emerging, with Hamilton rising by 1.0% in December, Tauranga by 0.4%, Dunedin 0.3%, and Christchurch holding steady.
But, there was still downward pressure in Auckland (-0.4%) and Wellington (-0.8%).
CoreLogic’s chief property economist Kelvin Davidson said December’s fall in values at the national level was an apt summary for 2024.
“Since the mini-peak back in February, property values have drifted lower at a modest pace, initially reflecting the high level of mortgage rates, but more recently the weakness of the labour market,” he said.
“December’s mild drop was simply a continuation of that pattern and sums up the market’s soggy performance in 2024.”
He said there had been a “discernible slowdown in the rate of decline in recent months, potentially signalling that the floor for property values could be within reach”.
“We’re still seeing some sluggish results in Auckland and Wellington, but firmer trends seem to be starting to emerge elsewhere.”
He said “conflicting forces” may remain a key theme for the property market in 2025 as well, with the effects of lower mortgage rates dampened to some extent by a still-sluggish economy and credit restrictions in the form of debt to income ratios.
“We suspect that 2025 could prove to be a year of conflicting forces for NZ’s housing market, with the net result being a relatively subdued upturn in sales volumes and property values.
“Our expectation is that values could increase by around 5% in 2025 across NZ as a whole, which would be pretty subdued compared to some past cycles.”
