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Cotality NZ's Home Value Index Shows New Zealand Property Values Fell in August

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Cotality NZ's Home Value Index for August showed property values across New Zealand fell by 0.4% over the month, marking the fifth consecutive monthly decline, according to a Friday report.

New Zealand property continued to trend lower in August, extending a period of subdued market conditions. The national median property value stood at NZ$797,944 in August, down just 1% from NZ$805,799 a year ago.

"Economic uncertainty, rising mortgage rates and a high level of properties available for sale are giving buyers little reason to rush," said Kelvin Davidson, Cotality NZ chief property economist. " At the same time, sellers generally aren't under significant pressure."

Ōtautahi Christchurch was the only market among the main centers to record growth in August, inching up just 0.1%, while values in Te Whanganui-a-Tara Wellington fell by 0.6% and in Tāmaki Makaurau Auckland by 0.5%.

There were widespread drops in values across Tāmaki Makaurau Auckland's sub-markets in August, with only Franklin holding steady. Each sub-market across the wider Te Whanganui-a-Tara Wellington area saw a decline in property values in August, per the report.

Overall, the housing market remains in a holding pattern, which seems set to last into next year as well, Davidson added. "There's no sign of a sharp downturn, but equally there's no obvious catalyst for stronger growth in the near term," he said.

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