Summarised by Centrist
Property values in New Zealand fell by 0.2% in December 2024, marking the ninth decline in the past ten months, according to CoreLogic.
The national median house value now sits at about $804,000, nearly 4% lower than a year ago and down almost 18% from the post-COVID peak.
CoreLogic’s chief property economist, Kelvin Davidson, described 2024 as a “soggy” year for the housing market. High mortgage rates and a weak labour market have driven declines, though a slowdown in the rate of drop suggests the market may be nearing its floor. “Firmer trends seem to be starting to emerge elsewhere,” Davidson noted, highlighting gains in Hamilton (1.0%), Tauranga (0.4%), and Dunedin (0.3%), alongside steady results in Christchurch.
However, Auckland (-0.4%) and Wellington (-0.8%) continue to experience downward pressure. Looking ahead, Davidson predicts a “relatively subdued upturn” in 2025, with property values expected to rise by around 5%. He attributed this to lower mortgage rates counterbalanced by a sluggish economy and credit restrictions.
Davidson concluded, “2025 could prove to be a year of conflicting forces for New Zealand’s housing market,” reflecting both potential recovery and persistent challenges.
