Most suburbs experiencing low or negative price growth

The property market recovery is losing steam, CoreLogic has found after analysing 938 suburbs throughout the country.

During the three months to June, 221 experienced median price falls of at least 1%, including ten which fell by at least 5%.

By contrast, 253 suburbs experienced gains of at least 1%, including eight which rose by at least 5%.

Overall, then, the national median price has inched forward over the past three months, even as prices have gone backwards in some suburbs.

Here's how the main centres have been performing:

• Auckland – the market has been clearly losing steam over the past three months.
• Hamilton – while some suburbs have experienced strong growth over the past quarter, the citywide market has slowed.
• Tauranga – the city as a whole is growing, but prices have declined in some suburbs.
• Wellington – the market has lost speed, with 30 suburbs out of 94 analysed down by at least 1% since March.
• Christchurch – prices have been rising throughout the city, but there are tentative signs the momentum is fading. 
• Dunedin – while all 63 suburbs have experienced price rises over the past year, 13 have experienced declines over the past quarter.

Market likely to remain subdued throughout 2024

CoreLogic Chief Property Economist Kelvin Davidson said the recent slowdown had affected both affluent and affordable markets.

“The turnaround in property values over the past 12 months reflects such factors as the relative resilience of the labour market over that period, and strong net migration. The more recent loss of momentum tends to reflect continued affordability pressures and high mortgage rates, the rise in listings on the market and a turning point for unemployment,” he said.

“Tax cuts and looser LVR rules may not boost activity or prices very much in an environment where mortgage rates remain high, although the removal of first home grants and the introduction of DTI limits might not necessarily undermine the market greatly either.

“All in all, the latest suburb-level figures confirm the market’s recent loss of momentum, and 2024 remains on track to be a pretty subdued year.”

While the market might be flat right now, history suggests that prices tend to rise significantly over the long-term. If you know anyone who’d like to buy a home or investment property, I’d be grateful for an introduction.