The housing market in New Zealand is currently experiencing a downturn, with property values decreasing in June. The rate of decline has increased compared to the previous month.
The weaker housing performance in Auckland is a major contributing factor to this decline. Some other New Zealand cities saw larger falls in house values during June.
Nick Goodall, Head of Research at CoreLogic NZ, believes that several factors, including high mortgage interest rates and stretched affordability, have impacted housing demand. The current downfall might slow down expectations of a quick recovery in the housing market. However, various results across the country show that the market might soon stabilize.
Despite the decline, average house values are still higher than before the COVID-19 pandemic. Goodall thinks that it is essential to focus on key market drivers instead of the exact timing of the bottom of the market.
Looking ahead, Goodall does not expect a significant bounce-back in prices as affordability remains a concern. A more stable and balanced market may eventually emerge.
Inconsistent trends are seen in 2023 house prices, with monthly changes fluctuating. While Auckland’s property values dropped in June, other cities showed mixed trends with modest falls and slight increases across the nation. In general, this suggests that the rate of change may be moderating, and the market could reach a more stable state soon.
Source from CoreLogic NZ
The opinions and research contained in this article are provided for information purposes only, are intended to be general in nature, and do not take into account your financial situation or goals.
