Property values across New Zealand extended a third consecutive monthly rise in April, in a slight surprise, edging up 0.1%, despite a soft start to the year for sales volumes and the Middle East conflict weighing on global economies, property valuation firm Cotality said Friday.
According to the Cotality NZ's latest Home Value Index, the national median value of $809,101 in April notched up 0.6% from January but remained nearly 17% below the peak seen in 2022.
Growth remains uneven across the country, with major cities Auckland and Wellington still witnessing minor declines of 0.1%. In contrast, house prices in Dunedin and Hamilton rose 0.8% and 0.3%, respectively.
"The bottom line is that the housing market broadly remains in a holding pattern, with buyers enjoying current conditions - or at least those that are secure in their jobs," said Kelvin Davidson, Cotality NZ Chief Property Economist.
The central bank is watching closely for any signs of second-round price effects from the Middle East conflict, particularly in wage demands or raised inflation expectations, amid a growing view that it may raise the Official Cash Rate as soon as July.
Nevertheless, it would not be a surprise for mortgage rates to gradually rise, with modest house price increases flattening or even reversing, Davidson added.