QV says home values fell nationally by an average of 10.3% last year - which was the largest drop in more than 15 years, but the market has not reached the bottom yet
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Loading... - Christopher ROBINSON
- 20 Jan 2023
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Quotable Value (QV) is warning of more bumps in the road yet for the housing market, which hasn't reached the bottom despite the biggest fall in 2022 for more than 15 years.
The latest QV House Price Index shows home values fell nationally by an average of 10.3% last year, which compared with increases of 13.3% in 2020 and 28.4% in 2021.
During that period the average home value increased from $724,185 three years ago to $1,053,315 at the peak of the market.
It now sits at $944,767 at the start of 2023.
According to the latest QV figures, from January 1 to December 31 last year, the largest recorded drop in average home value across NZ’s main urban centres occurred in the Wellington region (-18.6%). Palmerston North (-15.7%), Hastings (-13.4%), Auckland (-12.3%), and Napier (-11.6%).
New Plymouth (-2.5%), Marlborough (-1.5%), and especially Queenstown (+5.9%) proved to be the most resilient. The latter saw the only average home value increase across these centres in 2022.
However, QV chief operating officer David Nagel says the market hasn’t bottomed out yet.
"The latest figures show the average home value slipped a further 1.2% on average this quarter, which is a slight improvement on the 2.9% negative growth reported for the November quarter, but not really the usual ‘summer surge’ that we’d expect to see in the run-up to Christmas - and certainly a stark contrast to the last couple of years."
