Subj : Average home value sees 'modest' increase for first quarter
To   : All
From : News Person
Date : Tue Apr 09 2024 10:20 am

The average home value in New Zealand has seen a "modest" increase over the
first three months of 2024, according to the latest Quotable Value (QV) House
Price Report.


The March report shows the average home value has increased nationally by
2.2% to $924,734 - which is 1.9% higher than the same time last year and
13.1% below the market's peak in late 2021.


QV operations manager James Wilson described the current state of New
Zealand's residential property market as "flat".


"We're seeing only modest movement across the nation - mostly up, but some
down - which is a fair reflection of a housing market that is continuing to
find its footing again amidst some pretty strong economic headwinds," he said.


Three main urban areas recorded more growth in this QV House Price Index than
in the last one - New Plymouth (2.1%), Palmerston North (0.6%) and
Invercargill (0.7%).

"Although the pendulum has clearly swung in favour of prospective purchasers,
with a relatively large number of properties on the market today giving them
plenty of choice and helping to maintain downward pressure on prices overall,
interest rates and credit constraints are continuing to make life very
difficult for everyone," said Wilson.


He said the recent influx of new listings appears to have had a "cooling
effect" on the main centres, most notably Auckland, where home values have
stalled in recent months.


"Of the main urban areas we monitor, Queenstown experienced the most growth
this quarter at 2.7%, with Wellington and Christchurch not far behind on 2%
and 1.5% respectively.


The report detailed the average Queenstown home is worth 9.9% more than at
the same time last year, and 46.3% more than four years ago at the outset of
the Covid-19 pandemic in New Zealand Aotearoa.


QV senior consultant Blake Ngarimu said Wellington's market "continues to be
dominated by first-home buyers" while values across the Wellington region are
more affordable.

Wilson still maintains that "flat is the best word to describe the market
today and its trajectory".


"Even with the recent reintroduction of 80% interest deductibility for
landlords."

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