Key Facts
- New Zealand’s housing market is experiencing a lull, with CoreLogic data showing a general flattening trend.
- In April, the nationwide average house price declined by 0.1%, following minor increases in previous months.
- The trend is more prominent in Auckland, where property values saw a 0.6% decrease.
- The current nationwide average house price stands at slightly over $900,000.
- A high average fixed rate mortgage nearing 7% is contributing to the sluggish demand in the housing market.
- First home buyers are benefiting from these flat prices, with their sales share increasing by 20% as per Reserve Bank data.
- On the other hand, a significant drop of 25% has been noted in the issuance of new building consents.
Article Summary
The New Zealand housing market is currently going through a period of turbulence, with the latest CoreLogic data indicating a stagnant trend. In April, there has been a marginal decrease in nationwide average house prices by 0.1%, contrasting with the small upticks seen in previous months. This downward trend is more visible in Auckland, the country’s largest city, where property values dipped by 0.6%.
The nationwide average house price is now slightly over $900,000. One crucial factor impacting demand is the marked rise in mortgage interest rates, with the average fixed-rate mortgage now hovering close to 7%. This scenario has stymied the buying interest of many prospective homeowners.
Amid these flat prices, first home buyers have seized the opportunity to enter the market. Their share of sales has surged by 20% as per the Reserve Bank. In contrast, the construction sector has recorded a significant downturn, indicated by a 25% drop in the number of newly-issued building permits.
