Average house prices fall - except in the deep south

Property values ticked lower in the July quarter as the winter freeze continues, but the deep south continues to buck the trend.

The latest house price index from Quotable Value (QV) showed the national average home value fell 0.5 percent in the three months ended June to $909,671.

Values remained almost unchanged versus a year ago, but around 13.0 percent below the peak in late 2021.

The biggest rises were in Queenstown-Lakes, up 2.4 percent to $1.86 million, while Tauranga City rose 1.7 percent to $1.03 million.

Wellington recorded the biggest fall, down 2.3 percent to $818,274 followed by Nelson City which fell 2.2 percent to $781,443.

Auckland values eased 1.2 percent to $1.22 million, Hamilton fell 1.0 percent to $784,642, and Christchurch fell 0.2 percent to $775,030.

QV spokesperson Andrea Rush said most activity was occurring at the lower to mid-value end of the market, with first-home buyers and owner-occupiers the busiest in cheaper areas.

Rush said market conditions continue to vary by location and property type, with some regional centres experiencing renewed value growth off the back of earlier declines and ongoing demand for 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 said.