Average home values throughout New Zealand have fallen 13.1% since the property market reached its peak in late 2021, according to the most recent QV House Price Index.
The national average now stands at NZ$909,671, down from NZ$1,047,132 at the height of the housing boom.
The latest quarterly figures reveal a modest 0.5% decline in property values over the three months ending in July, while prices have remained largely unchanged compared with the same period last year.
This suggests that, after a period of significant correction, the housing market may be stabilising, with demand and supply beginning to balance and price fluctuations becoming less pronounced.
Major cities such as Auckland (-1.2%), Wellington (-2.3%), and Dunedin (-1.5%) experienced further declines this quarter, while a few locations saw modest increases. Tauranga (1.7%), Queenstown (2.4%), and Invercargill (1.2%) recorded slight gains. Meanwhile, Whangārei and Christchurch remained largely unchanged, with growth of 0% and 0.2% respectively.
QV national spokesperson Andrea Rush noted that the housing market is still adjusting to a softer economic environment, with buyers carefully considering factors such as affordability, job security, and mortgage repayment costs before committing to a purchase, 1News reports.
“There’s more activity occurring at the lower to mid-value end of the market, where first-home buyers and owner-occupiers remain the most engaged,” Rush said.
“These buyers are being supported by relatively stable interest rates, improving access to finance, and a wide range of listings, particularly in larger urban centres.”
Rush added that market conditions continue to differ depending on the location and type of property.
She also noted that some regional centres are seeing renewed price growth, driven by prior declines and sustained demand for more affordable housing.
“While national value levels have broadly stabilised, the recovery is uneven and fragile.
“Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty,” she added.
Rush said the coming months, typically marked by the spring uplift, will be “pivotal” in signalling whether the market is moving decisively toward a recovery.