Residential property values are now bouncing along the bottom and are showing little or no growth, according to Quotable Value (QV).
The latest QV House Price Index shows average home values decreased by 0.8% nationally over the three months to the end of October compared with a 1.6% average decline in the three months to the end of September, and a 2% drop in the three months to the end of August.
The country's average dwelling value is now $902,231, just 0.3% ($2839) less than at the start of the year. See the chart below for the regional values.
"New Zealand's housing market remains largely flat overall, with essentially no growth to speak of during the month of October itself, neither up nor down, and only a slight decline nationally this quarter of less than 1% on average," QV Operations Manager James Wilson said.
"Home values have flattened out again after some more sizeable yet still relatively modest reductions throughout the winter months, but they are still showing no signs of taking off anytime soon," he said.
"This is reflective of a housing market that is still severely constricted by strong economic headwinds, despite recent interest rate reductions, which will take some time to phase through.
"Likewise, our latest housing data also shows that home values have continued to slowly level out across most of New Zealand's main urban areas, with the average three month rolling rate of reduction slowing in Auckland at -0.8%, Christchurch -0.2%, Hamilton -0.6%, Tauranga -1.6% and Dunedin -0.1%."
Even Wellington's average rate of home value decline has slowed from -3.2% to -2.3% this quarter, though that figure is more than twice the national average.
"Heightened job insecurity is being more keenly felt in the capital. Otherwise, most of New Zealand's main centres appear to be bouncing along the bottom," Wilson said.
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