Following CoreLogic’s reported 4.5% house price decline over the October quarter, Quotable Value (QV) has reported a 3.9% price decline over the quarter.
As shown above, 15 out of 16 regions reported value declines over the October quarter.
This has taken prices down 9.7% since the beginning of this year according to QV’s index, with the list of towns, cities, and regions hitting double-digit home value declines in 2022 growing. These include:
- Wellington (-17.6%)
- Auckland (-11.7%)
- Hamilton (-10.5%)
- Napier (-11.6%)
- Hastings (-11.5%)
- Palmerston North (-13.7%)
- Dunedin (-10.4%)
QV Chief Operating Officer David Nagel noted that “at the same time last year, the QV House Price Index was showing an average home value increase of 22.2% throughout the first 10 months of 2021 – now it’s showing an average decline of 9.7% over the same period”. Accordingly, Nagel “can’t think of two more starkly contrasting consecutive years in my long career as a registered property valuer”.
Nagel also believes house prices will continue falling “with interest rates trending upward”. And “this will likely continue to have a dampening effect on the market for a good while yet”.
Given New Zealand inflation and wages are soaring, which is likely to be met with further aggressive rate hikes from the Reserve Bank, house prices have a lot further to fall.
