Property prices in Northland rose by 7.4 per cent in the three months to the end of March - including by 8.3 per cent in Whangārei - but there are signs the market is slowing in Northland.
Property prices in Northland rose by 7.4 per cent in the three months to the end of March - including by 8.3 per cent in Whangārei - but there are signs the market is slowing in Northland.
Northland property values have risen by more than $63,000 in the past three months - higher than anywhere else in the country.
But the experts say there are signs both the regional and national markets are cooling.
The latest figures released by OneRoof show Northland was the country's strongest housingmarket in the three months up to the end of March. The region's average property value grew 7.4 per cent - or $63,000 - to $918,000.
However, the month-on-month growth figure of 1.32 per cent indicates the region's unusually hot summer run has come to an end.
The average property value in Kaipara - home to several high-value beach locations popular with Auckland buyers - exceeded the $1 million mark for the first time after quarterly growth of 9.4 per cent.
Value growth in Whangārei was also high over the last three months at 8.3 per cent and brought the city $75,000 closer to joining Kaipara in the $1m club.
Value growth in the Far North over the quarter was a solid 5.2 per cent, but growth for the month was just 0.13 per cent, which suggests the district could be in negative growth territory come May.
Auckland property values have suffered their first drop in almost two years. The city's average property value fell 0.1 per cent in the first three months of 2022 to $1.553m, according to the OneRoof-Valocity House Value Index.
The drop was Auckland's first quarter-on-quarter decline since the first Covid-19 outbreak put the country's housing market on hold.
No other region saw price declines over the quarter or month-on-month, but the nationwide average property value did slip -0.27 per cent to $1.098m in March.
OneRoof editor Owen Vaughan said that the monthly growth figures pointed to more regions joining Auckland in negative territory.
OneRoof editor Owen Vaughan says Northland's hot property market is starting to cool, despite a country-leading 7.4 per cent rise in prices over the past three months.
"New Zealand's average property value grew 21.5 per cent, or $194,000, in the last 12 months to $1.098m, but dropped 0.27 per cent month on month. Quarterly growth was 2.1 per cent, or $23,000," Vaughan said.
"Northland and Taranaki were the hottest regions over the quarter, recording value growth of 7.4 per cent and 6 per cent respectively."
He said the easing of Covid restrictions and the passing of the Omicron peak will bring more positivity to the market, as will the Government's intention to defang the more contentious elements of the Credit Contracts and Consumer Finance Act.
But the headwinds are building and the market is clearly in slump territory.
The monthly growth figures showed the housing market had cooled in New Zealand's other major metros. Queenstown-Lakes' average property value soared to $1.867m but only 0.86 per cent of that was in March, while monthly growth slowed to 0.83 per cent in Wellington and 0.25 per cent in Christchurch after strong starts to the quarter.
First home buyers' share of purchases for the quarter nationwide dropped one point to 37.5 per cent, while investors' share of the market remained steady at 24 per cent.
James Wilson, head of valuations at OneRoof's data partner, Valocity, said that home loan restrictions, rising inflation and the outbreak of the Omicron variant had dented Auckland house prices.
"Auckland is bearing the brunt of the housing market slowdown. The last time the city's average property value dropped was June 2020, when the housing market was recalibrating itself after a two-month-long lockdown brought on by the arrival of Covid-19.
"However, back then interest rates were at an all-time low and buyer demand was rising. This time interest rates are on the up and the housing market is tipped for further declines."
