The latest QV House Price Index shows that average house prices across New Zealand fell by 2.9% in the three months to November, with all 16 regions recording declines:
The average value was $945,568 in November, down $118,197 (10.2%) from January. That means New Zealand house prices have fallen by $2,750 a week since January.
Commenting on the result, QV Chief Operating Officer David Nagel noted that “home values increased by nearly 30% nationally in 2021” and have “fallen by less than half that much on average” since January. “So there’s clearly still some way to go until we’re back at pre-pandemic levels”.
Nagel also warned that with the Reserve Bank signaling “further rises to look forward to next year, and with talk of a recession being bandied about”, Kiwis should “expect further downward pressure on prices well into 2023 before we might eventually see the market bottom out later in the year”.
Separate housing data released earlier this week by the Real Estate Institute of New Zealand also showed that home sales crashed to a 12-year low in November, with inventory soaring 48% year-on-year and house prices falling 13.7% from peak.
With the Reserve Bank forecasting a peak official cash rate of 5.5% next year, New Zealand’s house prices will continue to fall.
