What CoreLogic learned from analysing 917 suburbs throughout NZ

CoreLogic analysis of New Zealand's different property markets has revealed two key takeaways.

The first takeaway is that conditions can vary significantly from one part of the country to the other. Over the year to June, despite the national downturn, prices actually increased in 57 of the 917 suburbs (6%) analysed, with most of those suburbs located in the lower half of the South Island.

The second takeaway is that we appear to be approaching the end of the downturn. Over the three months to June, prices increased in 14% of the suburbs.

Where the market is heading

CoreLogic NZ Chief Property Economist Kelvin Davidson said there's clear evidence that the housing tide is turning.

“The trend shows house price falls have effectively levelled out and provides further, albeit tentative, evidence that the downturn may be winding up, for better or worse, depending on your perspective,” he said.

“I’m still expecting further falls to come and there will be no neat end to the downturn, rather the expectation is for a relatively subdued market, as stretched affordability and tight investor regulations contain demand and limit growth.”

What this means for buyers and sellers

If Davidson is right that the market will be “subdued” for the foreseeable future, that suggests a return to more normal market conditions, rather than the strong sellers’ market we saw during the pandemic and the strong buyers’ market we’ve seen over the past year or so.

That, in turn, may trigger more activity among both buyers and sellers.

Buyers who have been holding off until prices bottom out may feel they need to take action now, before prices start rising again.

Sellers who have delayed listing their home until boom conditions return may now realise that that kind of market is years away, so there’s no point waiting any longer.

If you’ve decided you want to buy soon, before prices start rising again, contact me for a pre-approval. House-hunting is much more effective when you know your budget and you can move fast once you spot your dream property.