CoreLogic reveals a continued drop in NZ home values for December
In December 2024, New Zealand’s property market experienced a slight decrease of 0.2% in home values, marking the ninth time in ten months that values have dropped, according to CoreLogic’s hedonic Home Value Index (HVI).
This brings the national median property value to $803,624, 3.9% lower than the previous year, and represents an approximate loss of $32,200 in value.
Regional variations highlight mixed outcomes
The end of 2024 saw varying performances across major urban centers, CoreLogic data showed.
Hamilton experienced a growth of 1% in home values during December, while Tauranga and Dunedin saw increases of 0.4% and 0.3%, respectively.
Christchurch’s market remained stable, showing resilience amidst broader national trends. However, significant declines were observed in Auckland and Wellington, with decreases of 0.4% and 0.8%, respectively, reflecting continued market pressures in these areas.
Commentary from CoreLogic’s chief economist
Kelvin Davidson (pictured above), chief property economist at CoreLogic NZ, reflected on the year’s trends.
“December's mild drop was simply a continuation of that pattern and sums up the market's soggy performance in 2024,” Davidson said.
He noted a slight deceleration in the rate of decline, suggesting that the market might be nearing a bottom.
“We're still seeing some sluggish results in Auckland and Wellington, but firmer trends seem to be starting to emerge elsewhere,” Davidson said, indicating a potential stabilization thanks to lower mortgage rates.
Detailed regional insights
Auckland’s diverse sub-markets showed mixed results, with the North Shore experiencing a slight uptick of 0.1% in December, contrasting with sharper declines in other areas such as Auckland City and Franklin.
In Wellington, the market remained weak across all regions, with notable declines in Wellington City and Lower Hutt.
Provincial market resilience
Some provincial areas showed signs of resilience, with modest increases noted in Whangarei, Napier, and Palmerston North, each rising by 0.2%.
These areas benefited from the influence of lower mortgage rates and relatively stable local economies, particularly those supported by agriculture, CoreLogic reported.
Market outlook for 2025
Looking ahead, Davidson anticipates a year of “conflicting forces” for New Zealand’s housing market in 2025.
Davidson predicted a subdued increase in property values, around 5%, influenced by both supportive lower mortgage rates and challenges such as high inventory levels and labor market uncertainties.
Additionally, new debt-to-income ratio rules expected to be discussed in mid-2025 could further impact the mortgage market.
For continued updates and more detailed analysis, visit www.corelogic.co.nz/news-research.
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