Insights from CoreLogic's latest report
The New Zealand housing market is beginning to show promising signs of recovery as evidenced by the latest data from CoreLogic NZ.
CoreLogic’s comprehensive update, Mapping the Market, analyses property values across a vast range of suburbs, shedding light on the current state and trajectory of the housing market.
Stabilising property values
According to Kelvin Davidson (pictured), chief property economist at CoreLogic NZ, over half of the analysed suburbs are witnessing either stable or rising property values.
“FIfty-four per cent of suburbs saw house values stabilise or increase, with a similar trend for flats or townhouses at 56%,” Davidson said, highlighting a cautious optimism for the market’s direction.
This improvement is largely attributed to the lowering of mortgage rates, with a Trade Me survey indicating New Zealand's property market confidence is at a two-year high.
Regional highlights and market dynamics
The CoreLogic report pointed out that the most significant price appreciations are occurring in more economically accessible regions.
The West Coast, particularly areas within Buller and Grey District, has seen house values climb by over 6% in the past quarter. Urban centers like Dunedin’s Waldronville and Hamilton’s Temple View have also posted impressive gains, underscoring the uneven yet tangible recovery across different markets.
Challenges to full recovery
Despite the positive trends, Davidson cautioned that the recovery is still in its nascent stages and remains uneven. Some suburbs continued to struggle with declining property values due to high supply volumes and economic uncertainties.
“Fewer than 230 suburbs saw house values drop by 2% or more over the past three months,” Davidson said, indicating a gradual consolidation in the market.
Innovative tools for market analysis
CoreLogic has also introduced an enhanced version of its Mapping the Market tool, now featuring detailed, suburb-level data differentiated by property type.
This digital tool provides a visual representation of median property values, helping stakeholders from homebuyers to policymakers discern trends and make informed decisions.
Economic implications and forward look
The CoreLogic report underscored a cautiously optimistic outlook for the New Zealand housing market, with lower interest rates and improving affordability helping to buoy the market. However, Davidson stressed that the recovery is expected to proceed at a moderated pace due to persistent economic and lending constraints.
