Key Facts

  • The average value of New Zealand homes dropped by almost $32,000 last year.
  • Drops in value were most significant in Auckland, particularly in Central Auckland’s eastern suburbs.
  • Rural centres and smaller towns managed to maintain their values better than major centres.
  • Among the smaller centres, Queenstown-Lakes reported an annual increase in average value of $96,424, up 5.8% for the year.
  • Although 2023 was generally difficult for property values, the year ended on a high with a national average value increase of 1.0% in December compared to November.
  • CoreLogic’s Chief Property Economist Kelvin Davidson anticipates continued variability in value growth this year both monthly and across regional markets.
  • Despite some drops in mortgage rates, affordability pressures are still a major concern, particularly for aspiring homeowners.

Article Summary

The housing market in New Zealand experienced a drop in the average value of homes by about $32,000 last year. The decline was more prominent in major centres like Auckland, with the city’s east central suburbs experiencing the highest fall. Smaller towns and rural centres, however, held their values better over the year.

In a turn of fortunes, some smaller centres, particularly in the South Island, reported higher average values by the end of 2023. Queenstown-Lakes stood out with an increase in average home value of $96,424, marking a 5.8% rise over the course of the year.

Despite the generally downward trend in property values for most of 2023, December saw the national average property value rise by 1.0% compared to November. However, CoreLogic’s Chief Property Economist, Kelvin Davidson, cautions about the continued variability in home value growth expected in 2024, both on a monthly basis and across different regions.

Davidson also highlighted the ongoing issue of affordability pressures, impacting especially potential first-time homeowners. While some mortgage rates have dropped, popular shorter fixed terms remain high, challenging the ability of these aspiring homeowners to enter the property market.

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