Key Facts

  • As per CoreLogic data, the national average house prices have risen by 0.7 percent in November.
  • The average house price nationwide is now $915,000 following two consecutive months of price increase.
  • New listings are beginning to increase, providing more choice for homebuyers but also heightening competition for sellers.
  • Despite a 1.1 percent increase over the past three months, the nationwide average prices are still 12.3 percent below the early 2022 record highs.
  • Ōtepoti / Dunedin saw the largest price gains among all main centres, up 1.9 percent.
  • Tāhuna/Queenstown and Tūranganui a Kiwa/Gisborne also experienced strong price increases of 3.2 percent and 1.9 percent respectively.
  • Mortgage rates may have peaked, but high mortgage rates continue to be a restraint in the housing market.

Article Summary

CoreLogic’s monthly property data indicates an increase in national average house prices by 0.7% for November, with the average national house price now standing at $915,000. The silver lining, however, is the rise in new listings which could benefit prospective buyers in terms of greater market choice. In contrast, sellers could face stiff competition due to the increased number of listed properties.

The trends in house prices vary across different regions. Notably, Ōtepoti / Dunedin experienced the most substantial price hikes with a 1.9% increase. On the other hand, prices soared by 3.2% in Tāhuna/Queenstown while Tūranganui a Kiwa/Gisborne witnessed a 1.9% jump. However, prices in Whangārei fell by -0.9% and Rotorua saw a -0.6% drop. Despite the inconsistency in house prices sub-regionally, they are steadily rising at a national level.

The current mortgage scene is marked by potentially peaking mortgage rates. CoreLogic’s chief economist Kelvin Davidson opines that the elevated volatility in the global financial markets and robust labour market aspects make the current rates level critical. Additionally, Davidson acknowledged the issue of high mortgage rates but assured that changes won’t occur instantly.

According to the market prognosis, with nationwide house prices likely to continue rising over the coming months, the housing affordability question remains a challenge for many. While high mortgage rates appear to persist, borrowers moving to higher mortgage rates in the near future could pose a risk, especially if job losses come into play in 2024. In summary, it seems the market is not ready to easily shrug off the impact of high mortgage rates.

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