The massive decline in home prices has continued into the new year, with further declines expected.
The latest Quarterable Value (QV) Home Price Index shows the average national home price fell 1.7% to $934,761 in the three months to January, compared with a 0.5% decline in the December quarter. showed.
Overall, the national average annual rate of decline was 12%.
Prices fell in all major cities, including Queenstown, which experienced its first quarterly decline since August 2020.
QV Chief Operating Officer David Nagel said it’s no wonder the housing market got off to a slow start this year, given the extreme weather that hit the upper half of the North Island.
However, house prices have fallen more sharply in the lower half of the North Island, with Palmerston North and Hastings recording the biggest average quarterly declines of around 3%.
The Wellington area also saw a significant decline in the quarter, with an average home price decline of 2.8%, an average of more than 20% year-on-year.
“Time will tell for sure, but it looks like the market hasn’t bottomed out yet,” Nagel said.
“As a result, many potential buyers now appear to be very cautious and watching exactly how far prices will go. Others either find it too difficult to raise money or We do not wish to make such promises given the very high level of uncertainty in the current economy.”
He said the summer is likely to remain a relatively quiet summer for the housing market, at least for the foreseeable future, given the extreme weather events and significant damage to parts of the country.
https://www.rnz.co.nz/news/business/484207/property-values-keep-falling-and-faster-than-before Asset values continue to fall, faster than before