Average dwelling values declined for the second month in a row in May, with Auckland leading the drop, according to property data company CoreLogic.
According to the company's House Price Index, the national average dwelling value was $931,438 in May, down from $933,633 in in April and $934,806 in March.
However, the drop in average value was much greater in Auckland, falling to $1,279,454 in May, making a decline of $18,141 (-1.4%) over the last two months from $1,297,595 in March and $1,290,329 in April.
Average values in Wellington were down 0.6% in May, while values in Tauranga dropped 0.5%.
Going against the trend average values rose 0.5% in Christchurch and were up 0.8% in Hamilton and Dunedin.
"Home value growth in Aotearoa has completely petered out in the past two months, with values dipping by 0.2% in May, after a minor fall in April," CoreLogic's latest HPI report says.
CoreLogic Chief Property Economist Kelvin Davidson says although the national declines over April and May were small, the shift in the market is clear to see.
"In the past few weeks we've seen a raft of regulatory changes, including the abrupt scrapping of first home grants, the near term easing of the loan-to-value ratio rules and the introduction of debt-to-income caps," he says.
"But with mortgage rates tipped to remain high for a while yet, it's no surprise the market has lost a bit of the momentum we had been seeing through the early part of this year."
"Forthcoming tax relief for households is unlikely to change that," Davidson says.
And the high number of homes for sale will continue to weigh heavily on the market.
"An important factor still in play is the high stock of listings on the market and the associated shift in bargaining power towards buyers, which is subduing prices," Davidson says.
"We also estimate that the shortening of the Brightline Test from July 1 could see as many as 50,000 properties benefit to some degree from reduced risk of having to pay capital gains tax, which could see some more listings coming to market."
"Of course, only a portion of those properties will actually be put up for sale," he says.
Weakening job security could also flow through to lower house prices.
"Borrowers who have faced higher interest rates as their previous mortgage deals come to an end have coped pretty well with tight monetary policy so far, thanks largely to the strong labour market," Davidson says.
"Looking ahead, a little less job security could see housing activity and prices remain fairly subdued," he says.
| CoreLogic NZ House Price Index | |||
| May 2024 | |||
| Territorial authority | Average current value | 3 month change % | 12 month change % |
| Far North | $706,082 | 0.8% | 1.2% |
| Whangarei | $751,585 | 1.5% | 0.6% |
| Kaipara | $843,368 | 0.5% | 0.6% |
| Auckland - Rodney | $1,269,599 | 1.5% | 2.2% |
| Rodney - Hibiscus Coast | $1,193,365 | 2.1% | 3.7% |
| Rodney - North | $1,300,741 | -1.2% | -1.4% |
| Auckland - North Shore | $1,458,462 | -0.8% | 1.6% |
| North Shore - Coastal | $1,674,777 | 0.7% | 1.6% |
| North Shore - North Harbour | $1,432,209 | -1.5% | 4.2% |
| North Shore - Onewa | $1,160,214 | -1.9% | 0.2% |
| Auckland - Waitakere | $1,005,693 | -0.6% | -0.6% |
| Auckland - Central | $1,474,341 | -0.8% | -5.3% |
| Auckland City - Central suburbs | $1,270,684 | 0.7% | -3.6% |
| Auckland City - Gulf Islands | $1,570,346 | -0.2% | -6.3% |
| Auckland City - South | $1,316,701 | -1.8% | -8.1% |
| Auckland_City - East | $1,838,435 | -0.8% | -3.8% |
| Auckland - Manukau | $1,145,486 | -2.6% | 0.9% |
| Manukau - Central | $884,680 | -2.4% | 0.9% |
| Manukau - East | $1,430,752 | -3.3% | 1.2% |
| Manukau - North West | $1,003,947 | -1.7% | 1.3% |
| Auckland - Papakura | $907,951 | -2.4% | 2.6% |
| Auckland - Franklin | $904,088 | -1.3% | -5.4% |
| Thames Coromandel | $1,194,351 | 4.0% | 4.1% |
| Hauraki | $640,584 | -1.5% | -1.6% |
| Waikato | $753,286 | -1.1% | 2.1% |
| Matamata Piako | $695,004 | 0.5% | -0.6% |
| Hamilton | $817,041 | 1.0% | 1.5% |
| Hamilton - Central & North West | $762,581 | 0.8% | 2.0% |
| Hamilton - North East | $1,003,325 | 0.6% | 0.5% |
| Hamilton - South East | $756,270 | 0.9% | 2.4% |
| Hamilton - South West | $723,882 | 1.6% | 1.3% |
| Waipa | $872,064 | 0.0% | 1.0% |
| Otorohanga | $531,970 | 0.8% | 0.5% |
| South Waikato | $425,381 | 0.4% | -1.3% |
| Waitomo | $368,673 | 2.3% | -6.0% |
| Taupo | $850,080 | 1.0% | 1.9% |
| Western BOP | $1,006,049 | 0.2% | 4.5% |
| Tauranga | $1,031,394 | -0.8% | 0.8% |
| Rotorua | $666,678 | 4.2% | 3.2% |
| Whakatane | $730,859 | -1.2% | -0.4% |
| Kawerau | $385,907 | 5.5% | -1.6% |
| Opotiki | $515,300 | 4.0% | -0.8% |
| Gisborne | $604,031 | -0.8% | 0.8% |
| Wairoa | $431,513 | 1.4% | 13.1% |
| Hastings | $797,073 | 0.0% | 3.2% |
| Napier | $761,546 | 0.6% | 0.8% |
| Central Hawkes Bay | $585,990 | -1.1% | -1.2% |
| New Plymouth | $722,863 | 1.1% | 3.4% |
| Stratford | $484,814 | -3.4% | 2.0% |
| South Taranaki | $444,603 | 1.4% | 0.8% |
| Ruapehu | $363,991 | 1.8% | -2.5% |
| Whanganui | $519,458 | 1.9% | 2.1% |
| Rangitikei | $433,216 | 1.8% | 6.5% |
| Manawatu | $617,203 | 0.4% | 2.0% |
| Palmerston North | $651,898 | 0.3% | 2.5% |
| Tararua | $414,133 | -1.9% | 1.0% |
| Horowhenua | $567,509 | 0.4% | 1.3% |
| Kapiti Coast | $844,386 | 3.5% | 4.7% |
| Porirua | $837,999 | -0.4% | 4.7% |
| Upper Hutt | $773,078 | 2.8% | 7.6% |
| Lower Hutt | $797,297 | -0.3% | 2.5% |
| Wellington City | $1,037,878 | 0.8% | 1.8% |
| Wellington - Central & South | $988,329 | 0.5% | 2.3% |
| Wellington - East | $1,143,068 | 0.4% | 0.7% |
| Wellington - North | $989,007 | 1.1% | 2.0% |
| Wellington - West | $1,175,035 | 1.9% | 2.4% |
| Masterton | $577,757 | 2.4% | 1.2% |
| Carterton | $622,197 | -1.7% | 0.1% |
| South Wairarapa | $756,686 | 0.0% | -5.7% |
| Tasman | $812,523 | 3.2% | 3.3% |
| Nelson | $784,377 | 0.2% | -1.0% |
| Marlborough | $704,962 | 0.3% | 3.8% |
| Kaikoura | $745,105 | 5.5% | 16.3% |
| Buller | $367,901 | 8.5% | 12.6% |
| Grey | $406,548 | -0.5% | 13.4% |
| Westland | $435,034 | 6.7% | 10.8% |
| Hurunui | $645,828 | 2.2% | 4.4% |
| Waimakariri | $713,179 | 0.8% | 1.9% |
| Christchurch | $765,336 | 0.9% | 4.8% |
| Christchurch - Banks Peninsula | $843,788 | 2.8% | 8.6% |
| Christchurch - Central & North | $866,675 | 0.3% | 4.4% |
| Christchurch - East | $597,310 | 0.5% | 4.4% |
| Christchurch - Hills | $1,096,530 | 3.6% | 6.2% |
| Christchurch - Southwest | $728,235 | 1.0% | 5.5% |
| Selwyn | $840,282 | 0.5% | 3.4% |
| Ashburton | $549,513 | 2.0% | 2.4% |
| Timaru | $527,602 | 0.4% | 3.4% |
| MacKenzie | $751,582 | -3.8% | 13.0% |
| Waimate | $426,929 | -2.1% | -1.7% |
| Waitaki | $483,600 | 0.7% | 1.1% |
| Central Otago | $837,047 | 3.1% | 7.5% |
| Queenstown Lakes | $1,801,945 | 0.2% | 4.4% |
| Dunedin | $650,016 | 2.1% | 4.8% |
| Dunedin - Central & North | $665,284 | 3.0% | 6.0% |
| Dunedin - Peninsular & Coastal | $624,374 | 4.4% | 6.2% |
| Dunedin - South | $605,284 | 1.2% | 3.1% |
| Dunedin - Taieri | $684,035 | 1.0% | 4.5% |
| Clutha | $400,714 | -0.7% | 2.3% |
| Southland | $500,627 | -1.8% | 4.0% |
| Gore | $419,967 | 4.3% | 9.2% |
| Invercargill | $473,403 | 1.9% | 5.9% |
| Auckland Region | $1,279,454 | -1.0% | -1.9% |
| Wellington Region | $920,551 | 0.6% | 2.8% |
| Main Urban Areas | $1,024,922 | -0.4% | 0.2% |
| All of Aotearoa | $931,438 | 0.1% | 1.0% |
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