Key Facts:

– New Zealand’s housing market downturn is officially over, according to analyst CoreLogic.
– Average prices have fallen a total of $138,000 from the record highs in late 2021.
– Auckland prices were the hardest-hit, falling $261,000 over the same period.
– The national House Price Index recorded a 0.4% rise in October, marking the end of the recent housing market downturn.
– Despite the decline, New Zealand house prices are still almost 25% above pre-Covid levels.

Article Summary:

According to analyst CoreLogic, New Zealand’s housing market downturn has come to an end. Average prices have fallen by $138,000 since reaching record highs in late 2021. Auckland experienced the sharpest decline, with prices falling by $261,000 during the same period. The national House Price Index, which tracks market changes, saw a 0.4% increase in October, confirming the end of the downturn.

Although prices have declined, they remain significantly high for many potential buyers. Average house values in October were nearly 25% higher compared to pre-Covid levels in March 2020. However, Auckland’s prices are starting to recover, with a 0.2% increase in October and an average value of $1.26 million.

Other main centers experienced varying degrees of decline during the downturn. Wellington was the next hardest-hit center, with average values falling by $248,000 or 22%. Tauranga continued to fall in October, with prices down by 0.1% and an average value of $1 million.

With prices now showing a positive turnaround, economists expect significant growth in the coming year. The surge in population, driven by migration, is anticipated to boost housing demand. Despite the potential impact of higher long-term interest rates, Westpac chief economist Kelly Eckhold predicts an 8% rise in house prices for 2024.

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