Housing market stagnant, confidence rises
The latest QV House Price Index showed a 2% national decline in home values over the three months to August, despite recent interest rate cuts.
“Home values have continued to slowly ebb and flow, but they are now effectively flat overall for the calendar year,” said James Wilson (pictured above), QV operations manager.
The average home price stands at $905,357, nearly unchanged since the start of 2024.
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Major cities see largest price drops
New Zealand’s largest cities saw the biggest declines, with Auckland and Wellington recording decreases of 2.8% and 3% respectively. This marks Auckland’s seventh consecutive month of negative growth.
“An abundance of real estate listings is expected to keep a firm lid on home value growth,” Wilson said, pointing to high inventory as a key factor suppressing prices.
Cautious optimism amid increased buyer interest
Though interest rate cuts have spurred buyer interest, Wilson noted that this doesn’t yet signal a rebound in prices due to the oversupply of listings.
“Now that interest rates are finally coming down, we are seeing renewed interest in housing, but this won’t necessarily translate into home value growth,” he said.
Spring may see more listings, but no price surge
With spring approaching, more listings are expected, including from investors responding to recent changes in the bright line test. However, Wilson cautioned against expecting rapid price increases.
“Spring has sprung and interest rates are coming down – but don’t expect to see house prices suddenly take off again soon,” he said.
Visit the QV website for a regional breakdown of the latest QV House Price figures.
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