CoreLogic HPI: Decreasing rate of NZ house price falls probably a false dawn
Sunday, 08 January 2023
Aotearoa New Zealand’s
housing market downturn appeared to lose further momentum over the final months
of 2022, however additional interest rate rises in the first half of the year
is likely to lead to ongoing weakness in the property market in 2023.
CoreLogic’s House Price
Index (HPI) shows property values fell -0.2% in December, a
further reduction in the pace of price declines from previous months (-0.6% in
November and -1.3% in October).
December’s fall means values were down -5.0% nationally over the calendar year,
leaving the average house price at $956,000 after starting the year at
$1,007,000.
CoreLogic NZ Head of
Research Nick Goodall said it was a significant turnaround
after the market grew by 27.6% in 2021. It’s also the largest annual decline
since June 2009 (-6.4%), when the market was still in retreat from the Global
Financial Crisis.
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“The CoreLogic HPI
indicates New Zealand’s property market peaked in March with the first monthly
fall in prices recorded in April,” Mr Goodall said.
“Since then we’ve seen the rate of decline accelerate as the official cash rate
climbed higher and affordability constraints kicked in. However, during the
last quarter of 2022 there were some signs of light at the end of the tunnel as
expectation of further interest rate increases diminished."
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Read the full research here:
https://www.corelogic.co.nz/news-research/news/2022/corelogic-hpi-decreasing-rate-of-nz-house-price-falls-probably-a-false-dawn?utm_medium=email&utm_source=email&utm_campaign=nz-res-hpi-2023-jan
