Two regions had seen a significant decline in property values in the second quarter
The property market seems to be at a turning point as a 5% to 70% decline looms around the corner, according to CoreLogic's latest report.
CoreLogic's latest Market Pulse report revealed that the quarterly housing value index nationwide continues to plummet, dropping by 1.5% in the second quarter of 2020. Auckland and Dunedin saw substantial falls in the quarter, with -2.4% and -2.5%, respectively.
Hamilton's housing value had a -1.1% drop, Wellington had -0.4%, and Christchurch -0.4%. In contrast, Tauranga's housing value went against the odds by increasing by 1.39%.
“The overall message is that the worm seems to have turned for property values in the main centres,” the report said, as reported by Interest.co.nz.
“Given that we are in a recession and that unemployment is rising, it's no surprise that property values have started to face some downwards pressure.”
Read: Returning Kiwis key to steady house prices – Report
Queenstown and Thames-Coromandel saw the most significant declines among the regional centres, with -7.2% and -5.2%, respectively.
“Overall, property values seem to have reached a turning point, and we estimate that the national average could ultimately fall by 5% to 7%,” the report said.
“That would obviously be unwelcome for any property owner, although a bonus for would-be buyers, but it would be a smaller fall than the figure of 10% during the GFC.”
