Home values in Hawke’s Bay down 16% on peak four years ago, some still declining

The value of housing in Napier is estimated to have dropped 16.5% from a peak in 2021. Photo / NZME

Home values in Napier and Hastings are running at 16.1% below the peak of four years ago, according to latest calculations from government valuation agency Quotable Value.

In its latest quarterly review, Quotable Value (QV) says Napier City home values fell 2% over the past three months to the end of June, to a new average value of $745,151 – on a “flat” scale compared with last year but 16.5% below the peak of $868,825.

In the Hastings District, values rose 0.7% for the quarter to an average of $779,281, 15.3% below the 2021 peak of $878,096.

The Wairoa District, where values plummeted in the wake of Cyclone Gabrielle and other weather calamities, posted the strongest growth in the region, with values up 7.2% over the quarter and 1.6% year on year to an average of $444,616.

It was one of the areas in the country now above its previous peak, sitting 2.7% higher, while remaining one of the most affordable places to buy a residential property in the country.

Central Hawke’s Bay District rose 1.4% in the three months to July and valuations there are now 4% lower year on year, with an average value of $547,776 — 18.2% below the previous peak.

The nationwide average value was 13.1% below the market peak of $1,047,132 in January 2022.

QV North Island revaluation manager Sophie Treder said the Hawke’s Bay property market remained mixed in July, with modest growth in some districts balanced by value declines in others.

Treder said first-home buyers and owner-occupiers were the most active participants in the market, while investor activity remained more subdued.

“Vendors are increasingly realistic in their price expectations, particularly when planning to buy again in the same market,” she said.

“Buyers are taking a cautious approach and making well-informed decisions, which is contributing to a steady, if subdued, level of activity.”