New Zealand house values slump 13% below Covid peak

Home values in Wellington City dropped 3.3% to $922,101 in the July quarter and are now down 27.3% below the nationwide market peak. Photo / Mark Mitchell

The average home value in New Zealand has fallen more than 13% below its Covid-era peak amid subdued market conditions, according to the latest QV House Price Index.

The national average fell 0.5% in the July quarter to $909,671 and is now 13.1% below the market peak in January 2022 of $1,047,132.

However, values remain almost unchanged compared with the same time last year as the rate of decline slows in many areas.

In Auckland, the average home value declined 1.2% over the July quarter to $1,219,470 and was 1.5% lower annually.

Values in Auckland now sit 19.7% below the nationwide peak of January 2022.

Home values in Wellington City dropped 3.3% to $922,101, which is 6.7% lower annually and 27.3% below the nationwide market peak.

QV national spokeswoman Andrea Rush said the housing market is still adjusting to a softer economic environment.

Rush said while national value levels have broadly stabilised, the recovery is uneven and fragile.

“There’s more activity occurring at the lower to mid-value end of the market, where first-home buyers and owner-occupiers remain the most engaged.

“These buyers are being supported by relatively stable interest rates, improving access to finance and a wide range of listings, particularly in larger urban centres.”

Rush said market conditions continue to vary by location and property type.

Some regional centres were experiencing renewed value growth off the back of earlier declines and ongoing demand for affordable housing, she said.

“Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty.”

Meanwhile, the upswing in the Northland market continued in the July quarter but at a slower pace, with values rising 1.2% to $739,755, 1.3% higher than the same time last year.

Tauranga (+1.7%), Queenstown (+2.4%) and Invercargill (+1.2%) also saw value growth over the three months to July.

The average home value in Tauranga was now 11.6% lower than the nationwide peak, Queenstown was 16.9% above the market peak and Invercargill was 5.5% higher.

Christchurch City’s average home values dipped 0.2% in the July quarter to $775,030 and 1.9% annually. Home values are now 0.2% lower than the nationwide peak.

Elsewhere, Dunedin City’s average home values fell 1.5% in the July quarter to $636,994, remaining unchanged at 0.0% annually and 11.3% below the market peak.