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House prices drop 3.4% nationally in June quarter

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Home price revisions are settling down as the market continues to cool. Rising interest rates And the list is oversupplied.

The Quotable Value home price index shows a 3.4% drop to $ 1.01 million in the three-month period to June, compared to a 2.2% drop in the May quarter.

But each year, average real estate prices have risen 7.2% from a year ago, up from 10.5% growth last month.

Auckland’s average value was $ 1.44 million, a decrease of 4.1% over the past three months and an annual growth rate of 7%.

Read more: Home prices tend to fall in most major cities this year

David Nagel, QV’s general manager, said the domestic market has changed significantly.

“Just six months ago, the domestic market was tracking value growth of just under 30% per year. This dropped so dramatically that it fell to a single digit. This home value correction is for Aotearoa as a whole. It will continue in, so it is inevitable that it will decrease further in the coming months.

“3.4% [national] Given the profits of the last two years, the three-month savings don’t seem to be that much, but especially when you look at the decline in value in the first six months of 2022, it’s much more important. .. If you bought it at the peak of the market in late 2021 “.

Read more: The “worst time” of 2022 for homebuyers for the first time in 65 years

Wellington and Napier recorded the largest price cuts in three months, down 6.6% and 5.4%, respectively.

QV said that only one of the 16 major cities monitored showed an increase in quarterly value. The region is Queenstown Lakes with a value growth of 1.9%.

Canterbury, the country’s most resilient market, recorded its first quarterly decline in home prices even before the Covid-19 pandemic began.

House prices fell an average of 1.2%-Frunui fell 0.3%, Christchurch fell 1.7%, and Selwyn fell 3.2%.

Read more: Half the prices of homes in the suburbs of New Zealand are declining

Olivia Brownie, a QV Canterbury consultant, said the region’s markets seem to have reached a turning point.

“We expect current economic pressures to continue to rise, and rising costs and rising interest rates to further lower house prices in the short term,” he said.

rnz.co.nz

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