CoreLogic HPI: Decreasing rate of NZ house price falls probably a false dawn

Title picture

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.

“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." 

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

Email  Facebook  Linkedin

McDonald Property Management Ltd

Address: 376 Great South Rd, Papatoetoe

Postal address: P.O.Box 39393 Howick 2145

Since 2011