New Zealand house prices have experienced their biggest quarterly drop in a decade, raising some hopes of a cooling market for those who have long been locked out by sky-high property prices. But the same forces that are pushing prices down – inflation, high cost of living, and rising interest rates – are also hitting prospective buyers, especially those at the bottom end of the market.
After years of rocketing prices, price data from across the country is now observing some of the largest drops and slowdowns since the aftermath of the global financial crisis. Valuation company QV found the average home decreased in value by -0.6% nationally in the first quarter of the year, with the national average value now sitting at $1,046,636. The decrease, while small, comes after years of steeply rising prices, and ANZ economists say the mood among buyers has shifted dramatically – from “fear of missing out” to “I’m not paying that”.
