Average residential property values bounced around in the second quarter of this year (Q2) depending on location.
According to QV, the average value of all residential dwellings throughout the country was $910,479 in Q2, down 0.3% compared to Q1 this year, and down -0.6% compared to Q2 last year and -14.5% compared to the 2021 peak in values.
However there were significant variations depending on location.
Around the main main centres, average values increased in Q2 compared to Q1 in Tauranga 0.1%, Hamilton 0.5% and Christchurch 0.1%, while average values declined in Auckland -1.0%, Wellington Region -2.0% and Dunedin -1.5% (see the chart below for the full regional figures).
Within the Auckland Region the central suburbs were the only district to record an increase in the average value, which was up a marginal 0.1%, while declines were recorded in Rodney -0.04%, North Shore -1.7%, Waitakere -1.0%, Manukau -1.2%, Papakura -0.1% and Franklin -0.6%.
The average Auckland dwelling value of $1,232,340 in Q2 was down by 1.4% compared to Q2 last year and down by 18.8% compared to the market peak in late 2021.
QV spokesperson Andrea Rush said there were some notable gains in Q2 values in some of the more affordable districts, such as the Far North 5.8%, Waitomo 5.2%, Wairoa 12.6%, Buller 6.2% and Gore 8.8%, while other centres tracked lower due to economic uncertainty and buyers remaining cautious.
Auckland Registered Valuer Hugh Robson said high levels of stock in most Auckland suburbs was helping to keep prices stable.
"For now, buyers have the upper hand, with many agents continuing to report low attendance numbers at open homes," Robson said.
"Some buyers are making cheeky offers to see what might be accepted in the current market," he said.
15 Comments
So we have moved on from wasting everyone's time to cheeky offers .....
I can see Take it or Leave it by xmas.
It's the asking prices that are cheeky.
Hurry up and reject my offer, I have 10 more to make this afternoon.....
your 'cheeky' offer :)
Oh no, Cheeky offers just does not fit in with the property narrative which up until now has been controlled by agents telling the vendors a property is worth x and trying to justify that price to buyers when the market value is only worth y (actually why do we even ask the agents the price?). Yes, I am espousing agents selling via negotiation, price, and deadline sale are a barrier to the market finding its true floor IMO
To be fair the agents work for the sellers to get the best price possible which is right as they are paid by the vendors - buyers think they work for them but it isn't the case
There was an article over the weekend about property prices increasing in Europe. They have certainly increased very substantially in coastal Spain.
Gaza property is cheap now, even below land value, and Kiev is falling, many have (or about to have) structural issues.
Not necessarily a silly idea to buy/invest in Spanish property.
Prices are still substantially below their GFC peak and the trend is up.
https://fred.stlouisfed.org/series/QESR628BIS
So more or less the opposite of NZ (looks like we've peaked with downside risks). Spain took their medicine post GFC - we did not.
There is plenty of choice. Make the offer that makes sense. Obviously housing has been in a bubble and sellers have been deluded. Delusion that is reinforced by agents seeking listing. Take it or leave it now as a buyers market.
Popcorn.
I note that clearance of stock is yet to occur.... Summer will be brutal
2026 and 2027, will be the unbearable hurt locker for the home hoarding PonziTown.
Many will lose their shirts, yet learn an important lesson on the perils of rampant financial speculation.
From the Comb last week:
“Given the many comments from agents about vendors who are hung up on 2021 prices, expect the buyer’s market to continue until well into next year.”
‘Survive to 25’ is starting to morph into ‘Survive to 27’. The capitulation phase runway is growing longer...
Time will tick, sales values will drop, get locked in and impact the rest, and the downturn will continue. Not everyone can afford to sit on their stock forever.
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