Average residential property values are continuing to rise throughout the country but the rate at which they are increasing is slowing, according to property data company CoreLogic.
The average value of New Zealand homes was $890,848 at the end of May, according to the CoreLogic House Price Index (HPI).
That was up $19,473 from $871,375 at the end of April.
Both figures are a three month rolling average, based on sales made over the previous three months.
They show the average value of NZ homes increased by 7.7% in the three months from March to May, but that rate of growth was down from 8.1% over the three months from February to April.
CoreLogic publishes rolling average value figures for 100 urban districts throughout the country and of those, the rate of growth slowed over the three months to the end of May compared to the three months to the end of April, in 53 of them, increased in 45 and was unchanged in two. (The table below shows the latest CoreLogic average values in all 100 districts and the rate of change over three and 12 months).
CoreLogic's head of research Nick Goodall, said the slowing in the rate of growth reflected changes to the tax treatment of residential investment properties and mortgage borrowing rules recently announced by the Government and Reserve Bank (RBNZ).
"In the last few weeks both the Government and RBNZ have released house price forecasts with expectations of a significant reduction in growth over coming months," Goodall said.
"The CoreLogic HPI provides some evidence of this, while analysis of preliminary sales data goes a step further, illustrating the most recent sales are not performing at the same level as those earlier in the year.
"This reflects the impact of both the tightened loan-to-valuation ratio (LVR) restrictions imposed by the RBNZ, as well as the March 23 housing policy announcement from the Government, phasing out the ability for [residential] property investors to deduct their interest expenses from their end of year tax returns," he said.
Expectations of higher mortgage interest rates would also weigh on the market.
"Further adding to the complexity, we are also now navigating a changing environment when it comes to the interest rate outlook," Goodall said.
"As the RBNZ forecast in their latest Monetary Policy Statement, the next move for the Official Cash Rate is expected to be up, albeit in at least a year's time, but this is likely to weigh on buyer attitudes with regards to taking on large sums of debt."
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|CoreLogic House Price Index|
|Three Months to the End of May 2021|
|Territorial authority||Average current value $||3 month change %||12 month change %|
|Auckland - Rodney||1,161,225||6.4%||18.0%|
|Rodney - Hibiscus Coast||1,119,237||5.9%||16.2%|
|Rodney - North||1,199,308||6.8%||19.3%|
|Auckland - North Shore||1,435,123||4.8%||14.1%|
|North Shore - Coastal||1,642,899||4.7%||14.6%|
|North Shore - North Harbour||1,360,049||5.4%||12.0%|
|North Shore - Onewa||1,179,259||4.1%||15.0%|
|Auckland - Waitakere||1,020,171||7.6%||18.9%|
|Auckland - Central||1,483,594||4.6%||15.4%|
|Auckland City - Central||1,247,331||2.1%||11.3%|
|Auckland City - Islands||1,442,300||12.3%||26.6%|
|Auckland City - South||1,342,536||3.9%||16.7%|
|Auckland_City - East||1,877,005||6.0%||15.7%|
|Auckland - Manukau||1,117,024||6.6%||19.1%|
|Manukau - Central||879,216||7.5%||21.7%|
|Manukau - East||1,443,767||7.1%||20.4%|
|Manukau - North West||956,781||5.5%||16.7%|
|Auckland - Papakura||876,926||8.1%||21.2%|
|Auckland - Franklin||829,865||6.8%||20.5%|
|Hamilton - Central & North West||734,647||10.4%||24.5%|
|Hamilton - North East||956,909||9.8%||23.6%|
|Hamilton - South East||730,391||10.7%||24.9%|
|Hamilton - South West||709,143||9.5%||27.2%|
|Central Hawkes Bay||521,036||8.0%||28.6%|
|Wellington - Central & South||1,086,646||9.3%||22.5%|
|Wellington - East||1,201,493||12.7%||24.6%|
|Wellington - North||1,040,759||10.7%||27.3%|
|Wellington - West||1,279,520||10.3%||25.8%|
|Christchurch - Banks Peninsula||658,391||9.2%||20.1%|
|Christchurch - Central & North||707,789||7.2%||17.0%|
|Christchurch - East||472,410||9.2%||19.9%|
|Christchurch - Hills||836,396||8.0%||19.2%|
|Christchurch - Southwest||585,925||9.9%||19.2%|
|Dunedin - Central & North||665,211||5.1%||18.3%|
|Dunedin - Peninsular & Coastal||599,133||7.5%||21.7%|
|Dunedin - South||619,254||6.1%||14.9%|
|Dunedin - Taieri||669,104||5.5%||15.9%|
|Main Urban Areas||1,011,300||7.2%||19.3%|