New Zealand’s property values are now marginally higher throughout the country for the first time in two years, according to recent findings.

This is despite the rate of home value growth flattening within major urban centres in Q1 in the QV House Price Index.

The average home value in New Zealand rose by 1.3% on a national level during the current quarter, compared to 2% growth in the prior quarter.

As it stands, the national average home value is now up 0.6% compared to the same time last year, and 13% under the peak at the end of 2021.

According to QV operations manager James Wilson, this return to positive year-on-year growth signals a reversal of value weakening across the country.

“However, the slow but steady growth that we have been experiencing since June last year now appears to be flattening even further,” he stated.

Furthermore, only three of the principal urban areas reported more positive home value growth in Q1, namely Tauranga and Marlborough both with 3.1%, and Nelson with 1.2% growth, 1News reports.

The three-month rolling average in Auckland turned negative, -0.1%, for the first time since August last year.

Out of Auckland’s seven former territorial authorities, three reported a fall in average home value; Waitakere with -0.5%, Papakura with-1.7%, and Franklin with-1.3%.

According to QV registered valuer, Hugh Robson, some setbacks were predicted as the market recovers from the downturn in 2022.

“This is continuing to impact on first-home buyers in particular, who have been the most active participants in the market to this point.

“Many owner-occupiers who want to upgrade to bigger or better properties appear to still be hesitant – as are investors, despite rents continuing to rise,” he said.

Moreover, home values in Christchurch and Wellington rose at the lower rates of 2.4% and 2.5% respectively, the 1News report adds.

The QV operations manager added the trend was being fuelled by a fall in demand, which may continue in the coming months.

“In some areas, it appears that the increase in the number of new listings that came onto the market in late January and in February appears to have met market demand, cooling competition in places like Auckland in particular, and therefore flattening home value growth,” he commented.