QV says housing market remains subdued as values decline over winter

House values have been declining over winter, with the average dwelling value down 0.5% to $909,671 over the three months to the end of July, according to QV.

New Zealand's average dwelling value is now 13.1% below the January 2022 market peak of $1,047,132.

Around the country, average values fell in 11 of the 16 main urban districts over the three months to the end of July, increased in four and were unchanged in one. (See the chart below for the regional figures).

The biggest quarterly drops were in Wellington Region -2.3%, followed by Nelson city -2.2% and Napier -2.0%.

The biggest increases were in Queenstown-Lakes where the average value was up 2.4% for the quarter, followed by Tauranga up 1.7% and Invercargill up 1.2%.

In Auckland, the country's largest real estate market, the average value declined by 1.2% over the three months to the end of July.

"While the rate of decline has slowed in many areas, the overall market remains subdued," QV said in its July House Price Index Report.

QV spokesperson Andrea Rush said the housing market is still adjusting to a softer economic environment, with many buyers carefully weighing affordability, employment security and mortgage servicing costs before committing to a purchase.

"There's more activity occurring at the lower to mid-value end of the market, where first home buyers and owner-occupiers remain the most engaged," she said.

"These buyers are being supported by relatively stable interest rates, improving access to finance and a wide range of listings, particularly in larger urban centres," Rush said.

However, market conditions varied by location and property type.

"While national value levels have broadly stabilised, the economy is uneven and fragile," Rush said.

"Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty," she said.