National average home value falls slightly
Property values ticked lower in the June quarter amid high stock levels and cautious buyer sentiment, although more affordable areas are showing price gains.
The latest house price index from Quotable Value (QV) showed the national average home value fell 0.3 percent in the three months ended June to $910,479.
However, values remained 0.6 percent lower than a year ago, and around 14.5 percent below the peak in late 2021.
The biggest rises were in Queenstown-Lakes, up 1.9 percent to $1.85 million, while Invercargill rose 1.6 percent to $506,567.
Wellington recorded the biggest fall, down 2 percent to $822,636, followed by Dunedin which fell 1.5 percent to $635,155.
Auckland values eased 1 percent to $1.23m, Hamilton rose 0.5 percent to $791,707, and Christchurch rose 0.1 percent to $775,352.
QV spokesperson Andrea Rush said buyers appeared to be taking advantage of more choice and falling interest rates, with first-home buyers and owner-occupiers the busiest in cheaper areas where prices were seen as more affordable.
Rush said price moves were stronger in the regions.
"Regional divergence is becoming more evident, with more affordable markets recording notable quarterly gains such as the Far North (5.8 percent), Wairoa (12.6 percent), Waitomo (5.2 percent), Buller (6.2 percent) and Gore (8.8 percent), while others continue to track lower due to economic uncertainty and a cautious buyer pool," she said.
"Some buyers may be anticipating lower rates, with bank activity back to mid-2022 levels after the market peak," Rush said.
"However, it's unclear how much of this reflects new purchases versus refinancing."
Rush said global conflict, economic uncertainty, and rising living costs were likely to limit price rises in the near term.
