The average value of homes throughout New Zealand declined for the second month in a row in May, with the average value of Auckland homes falling by more than $47,000 over the last two months, and the average value in the Wellington Region dropping by more than $36,000.
According to the CoreLogic House Price Index (HPI), the average value of all NZ homes was $1,027,121 in May, down by $16,140 since March.
The decline in average values was particularly severe in Auckland, where the average value of homes in the region has dropped from $1,520,341 in March to $1,473,076 in May, a decline of $47,265 in two months.
The Wellington Region wasn't far behind, with the average value there dropping by $36,187over the same period, from $1,128,708 in March to $1,092,521 in May.
Other major centres to record declines in average dwelling values over the two months from March to May were Hamilton -$26,136, Hastings -$34,029, Napier -$16,386 and Whanganui -$15,062.
The table below shows the average dwelling values in all main urban districts in May, and the percentage change over the previous three months and one year.
This shows that the decline in values that began in Auckland at the beginning of the year is rapidly spreading through the rest of the country, although all districts are still showing annual increases in value.
The biggest drops in average values over the three months to May were in the King Country town of Otorohanga -6.6%, Hurunui in North Canterbury -6.4%, the south east suburbs of Hamilton -6.3% and Upper Hutt -6.2%.
"The downwards momentum in NZ residential real estate values continued throughout May," CoreLogic's May HPI report said.
"With housing credit tight and getting more expensive by the week, this trend towards weaker housing market conditions is likely to continue.
"The quarterly fall of -0.9% is the biggest drop over a three month period since the end of 2010, when the market was still in recovery mode from the Global Financial Crisis," it said.
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| CoreLogic House Price Index | |||
| May 2022 | |||
| Territorial authority | Average current value | 3 month change % | 12 month change % |
| Far North | $726,366 | 2.2% | 27.2% |
| Whangarei | $843,664 | 1.6% | 17.6% |
| Kaipara | $907,752 | 1.7% | 24.6% |
| Auckland - Rodney | $1,418,630 | 2.1% | 22.2% |
| Rodney - Hibiscus Coast | $1,330,209 | -0.1% | 18.9% |
| Rodney - North | $1,496,183 | 3.9% | 24.8% |
| Auckland - North Shore | $1,638,836 | -1.9% | 14.2% |
| North Shore - Coastal | $1,887,314 | -0.6% | 14.9% |
| North Shore - North Harbour | $1,558,276 | -3.5% | 14.6% |
| North Shore - Onewa | $1,321,104 | -3.1% | 12.0% |
| Auckland - Waitakere | $1,184,422 | -2.3% | 16.1% |
| Auckland - City | $1,691,161 | -1.7% | 14.0% |
| Auckland City - Central | $1,425,594 | 0.6% | 14.3% |
| Auckland City - Islands | $1,846,994 | -1.6% | 28.1% |
| Auckland City - South | $1,525,562 | -3.1% | 13.6% |
| Auckland_City - East | $2,112,726 | -1.8% | 12.6% |
| Auckland - Manukau | $1,327,280 | -3.5% | 18.8% |
| Manukau - Central | $1,043,910 | -2.6% | 18.7% |
| Manukau - East | $1,635,929 | -5.4% | 13.3% |
| Manukau - North West | $1,154,338 | -1.3% | 20.7% |
| Auckland - Papakura | $1,072,427 | -1.0% | 22.3% |
| Auckland - Franklin | $1,040,567 | -1.3% | 25.4% |
| Thames Coromandel | $1,190,044 | 2.8% | 17.4% |
| Hauraki | $685,703 | -0.6% | 34.7% |
| Waikato | $784,923 | -6.0% | 22.3% |
| Matamata Piako | $742,544 | 2.5% | 28.6% |
| Hamilton | $865,748 | -3.8% | 10.0% |
| Hamilton - Central & North West | $805,641 | -3.9% | 9.7% |
| Hamilton - North East | $1,077,440 | -4.1% | 12.6% |
| Hamilton - South East | $778,615 | -6.3% | 6.6% |
| Hamilton - South West | $785,967 | -0.3% | 10.8% |
| Waipa | $916,521 | 0.6% | 20.6% |
| Otorohanga | $530,799 | -6.6% | 6.7% |
| South Waikato | $479,052 | 0.7% | 27.8% |
| Waitomo | $386,565 | 8.5% | 18.8% |
| Taupo | $900,672 | 6.8% | 22.3% |
| Western BOP | $1,079,791 | 1.1% | 27.3% |
| Tauranga | $1,178,517 | 0.0% | 21.7% |
| Rotorua | $722,758 | -2.5% | 9.0% |
| Whakatane | $792,601 | 10.5% | 17.0% |
| Kawerau | $435,845 | 6.5% | 18.9% |
| Opotiki | $552,029 | 1.1% | 17.3% |
| Gisborne | $677,763 | 6.3% | 14.7% |
| Wairoa | $419,216 | -5.8% | 10.0% |
| Hastings | $868,975 | -4.1% | 13.6% |
| Napier | $878,904 | -1.7% | 10.4% |
| Central Hawkes Bay | $663,422 | 2.0% | 27.3% |
| New Plymouth | $750,823 | 3.4% | 18.5% |
| Stratford | $527,821 | 12.7% | 20.1% |
| South Taranaki | $455,935 | 3.6% | 22.1% |
| Ruapehu | $411,462 | 1.1% | 20.2% |
| Whanganui | $557,803 | -1.2% | 11.5% |
| Rangitikei | $502,588 | 3.9% | 16.2% |
| Manawatu | $677,997 | -2.4% | 12.5% |
| Palmerston North | $738,257 | -1.9% | 7.8% |
| Tararua | $486,370 | 2.4% | 15.6% |
| Horowhenua | $659,993 | -1.8% | 13.1% |
| Kapiti Coast | $975,715 | -0.3% | 8.2% |
| Porirua | $978,726 | -3.1% | 9.1% |
| Upper Hutt | $892,113 | -6.2% | 5.7% |
| Hutt | $941,651 | -4.5% | 5.6% |
| Wellington City | $1,242,386 | -3.6% | 11.1% |
| Wellington - Central & South | $1,185,394 | -1.2% | 9.1% |
| Wellington - East | $1,359,468 | -4.8% | 13.2% |
| Wellington - North | $1,176,782 | -4.9% | 13.1% |
| Wellington - West | $1,417,637 | -4.9% | 10.8% |
| Masterton | $691,319 | 0.5% | 16.3% |
| Carterton | $731,726 | -0.3% | 8.5% |
| South Wairarapa | $919,096 | 0.8% | 17.1% |
| Tasman | $873,494 | 2.0% | 16.2% |
| Nelson | $864,400 | 0.1% | 13.9% |
| Marlborough | $747,261 | 2.6% | 9.6% |
| Kaikoura | $656,974 | 11.6% | 22.6% |
| Buller | $294,885 | 26.4% | 14.0% |
| Grey | $342,812 | 4.6% | 19.9% |
| Westland | $383,040 | 9.0% | 15.8% |
| Hurunui | $575,213 | -6.4% | 15.7% |
| Waimakariri | $692,676 | -1.9% | 26.1% |
| Christchurch | $763,168 | 0.5% | 24.5% |
| Christchurch - Banks Peninsula | $820,550 | 5.5% | 24.6% |
| Christchurch - Central & North | $873,124 | -0.3% | 23.4% |
| Christchurch - East | $582,657 | -0.2% | 23.3% |
| Christchurch - Hills | $1,043,885 | 3.1% | 24.8% |
| Christchurch - Southwest | $738,333 | 0.4% | 26.0% |
| Selwyn | $872,263 | 0.9% | 30.5% |
| Ashburton | $526,863 | 4.2% | 20.7% |
| Timaru | $509,694 | 1.9% | 15.5% |
| MacKenzie | $693,879 | 2.3% | 11.3% |
| Waimate | $419,299 | 6.3% | 24.8% |
| Waitaki | $495,043 | 0.6% | 17.4% |
| Central Otago | $782,130 | 0.0% | 16.6% |
| Queenstown Lakes | $1,694,211 | 12.0% | 26.0% |
| Dunedin | $691,567 | -2.3% | 7.0% |
| Dunedin - Central & North | $700,687 | -4.5% | 5.3% |
| Dunedin - Peninsular & Coastal | $690,560 | 7.7% | 15.3% |
| Dunedin - South | $660,250 | -3.0% | 6.6% |
| Dunedin - Taieri | $716,569 | -1.7% | 7.1% |
| Clutha | $406,101 | -3.3% | 20.5% |
| Southland | $488,784 | 2.7% | 19.0% |
| Gore | $387,135 | -0.2% | 15.2% |
| Invercargill | $475,101 | -1.5% | 11.2% |
| Auckland Region | $1,473,076 | -1.8% | 16.4% |
| Wellington Region | $1,092,521 | -4.0% | 9.1% |
| Main Urban Areas | $1,154,531 | -2.0% | 14.2% |
| Total NZ | $1,027,121 | -0.9% | 15.3% |
71 Comments
...average value of homes in the region has dropped from $1,520,341 in March to $1,473,076 in May, a decline of $47,265 in two months.
Good grief. That's a lot of smashed avacado on toast. Glad I got out when I did, I suppose that option is still open to them as well.
Some finding it hard to get out now, havnt seen a sold sticker added to any of the ever increasing for sale signs around Akld for a while
Same here in Napier where properties are moving MUCH more slowly than they would have even 6 months ago. I remember when I bought my property several years ago there were less than 100 properties for sale in Napier on TradeMe. Today it's approaching 500. Many properties for sale, and few sold signs going up.
I still can't get my head around Havelock North prices in particular...seems like crazy stuff going on down that way.
Notably, house price falls have been small, compared with the increases during the previous market upswing.
Further, a remarkable number of localities are still recording price gains.
TTP
When we’re seeing 6% over 3mo immediately after ~50% over two years, the equivalent upswing % is 9%. So a 6% downfall in three months has wiped out ~20% of the bubble gains. If this trend continues then nearly half the gain will be gone by the years end. The market needs to fall only 2% per month to be trending down at a faster rate than it was trending up over 20/21.
Edit: updated upswing percentages - was slightly off.
Welfare handouts were generous, yes.
Remember the rule TTP
House prices halve every 10 years.....
Dumb comment coming from someone who recently made a killing in real estate.
This is true, selling in the last week of Nov 21, was in hindsight quite smart... may buy it back in a few years.
Yesterday anz projected 11 percent FALL for the year. These numbers from another aussie company corelogic, show 0.9 percent latest 3 months and GAIN of 15.3 over 12 months. ANZ has some explaining to do
One is looking back and the other forward.
That's obvious, I get that. Maybe what you missed is that there are now only 6 months left in order to fall 26 percent!! 15.3 plus 11 percent. Do you still think that is possible if the last 3 months produced a change of less than One percent?
If their prediction was any dumber it would be criminal.
You must have taken the same statistics class as CWBW.
Calling the prediction “dumb”, while simultaneously failing at basic math, is pretty embarrassing.
Oh that is a pity, that you looked at things upside down and in 2020 and missed the property bullet train. We have built more than enough equity so I wonder which one failed basic maths / math
Sometimes people do well despite lacking basic maths skills. I was inclined to give you the benefit of the doubt - we all have misunderstandings from time to time - but the subject appears to have touched a nerve.
Hey mate, it's hilarious watching you be wrong, but gotta put this straight.
What happened late last year doesn't affect the statistics of 'last 12 months' when viewed from the end of 2022.
Get it?
Dont worry mate I realise that. And I find it funny/hilarious, use your own adverb, watching all of the "geniuses" here on interest who think they have the property market nailed. As I mentioned to miguel he did not catch the property bullet train only very few others did because they were all too busy downramping and trying to portray their own storyline.
And back to 2022, here are some facts without the rah-rah noise of the interest.co intellectually challenged rocket scientists. Year to date GAIN 14.3 percent. (6, 4.9, 3.6, 0.7, -0.9) So over the next 7 months you are expecting falls of 3.6 percent a month. Sorry mate you are in cloud cuckoo land, obviously sharing the space with miguel and mfd. Now look who cannot do basic maths (or math eh miguel)
My mistake - your error is comprehension rather than mathematics. The year to date numbers you are using are 3-monthly increases, not 1-monthly, so you are including data from the tail end of last year, and even double/triple counting them. Your 6% January number is a 3-monthly change and the actual month-on-month change is 2.1% (up $21,465 to $1,028,097).
https://www.interest.co.nz/property/114184/average-dwelling-value-new-z…
You will have to re-run your sums I'm afraid - I hope you don't have too much riding on this.
Hahahaha excellent.
Of course I was expecting someone to come up with excuses why the official Corelogic figures, often the first report released each month for the preceding one would not apply. You proved me right mfd, thank you.
You really don't get it? Take a look at the data series and try to reconcile it with your calculated year to date rise and it's extremely obvious you've made an error. I've pointed out exactly what the error is.
https://www.interest.co.nz/charts/real-estate/qv-house-price-index
I'm not doubting the numbers in the Corelogic release but you have misinterpreted them dramatically.
The big rises from late last year will have dropped out of the annual data by the end of this year, it's extremely easy for both these things to be true. Try knocking up a little recreation in excel assuming small monthly drops for the rest of the year.
No why dont you take your own advice, you might actually learn something
Sure thing. Here's the data series:
https://www.interest.co.nz/charts/real-estate/qv-house-price-index
31st December, C/L HPI at 3865. Currently sits at 3934, up 1.7% for the year (you're probably aware the Corelogic series is quite lagged, REINZ will be in negative territory for 2022).
11% down for the year would be 3439. To get there we need a ~1.9% fall each month this year. This month we saw a 1.6% fall and momentum is building.
Make sense? I don't think the ANZ prediction is crazy all.
The Corelogic data is all settled sales that happened months ago and is 'old news'. REINZ already reported these falls months ago. market down over 6% nationwide and over 10% in Auckland and Wellington. That ANZ prediction will get revised down again when REINZ data comes out next week showing further significant falls no doubt
Consents through the floor.
Interesting that the labour government was the one to trigger stagflation in building and crash the industry.
If the government can't build houses (see Kiwibuild), then might as well make it difficult for anyone else to.
it wasn't the govt building houses. It was the govt backstopping profit for developers. And failing to keep up with a booming market so most developers wanted nothing to do with it.
Well yeah, the government only really commissions stuff.
Housing NZ likes to have fixed pricing for 5 year periods for a lot of its work, I wonder how many suppliers and contractors have stuck around over the last 24 months.
They fell slightly after continuous record months, hardly "through the floor"
NZ inc is still playing with monopoly money, although it does seem to be regaining some value with the effects of inflation heating up. Nothing like a little scarcity to make one stop and think.
Edit.
What I mean is that these house prices read like telephone numbers. It's just a number. We haven't yet gotten to the point that money has real value again. In my opinion at least.
The value of money has always been arbitrary, in it's purest form it's a store of value.
So if you are purely dealing in cash, you are likely to come off second best.
In its purest form its a method of Exchange.
Auckland average value at 1.471 million.....WOW.......still miles to go.
Homes.co.nz peak for me was $3,250,000. Now $2,900,000. Happy to see it below $2,000,000 if it means this Government is toast. Cash going in one year TDs. Happy Days.
statistically you will still be up about 500k year on year, prices went nuts.... in 2021
Drafty uninsulated ex council houses are only 2.2m now? Be quick!
Easy come, easy go
And its gone....... https://www.youtube.com/watch?v=-DT7bX-B1Mg
The last years of crazy speculation fueled by paying nothing for money is being unraveled. Money now costs...real money. More to come this year in the cost of debt, and the decline of asset bubbles.
Popcorn.
Have we reached the peak of worse that could happen to Inflation, Interest Rate, OCR...or is it just the beginning and worse is yet to come.
10% or 15% fall after 40% to 100% rise in a year is not something that many will worry except few and will this few trigger bigger downfall.
https://www.stuff.co.nz/business/128805595/record-low-interest-rates-ar…
https://www.interest.co.nz/property/116154/anz-expects-ocr-peak-35-febr…
https://www.rnz.co.nz/news/business/468255/house-prices-continue-to-fal…
$47k down in Auck sounds a lot, but $47k represents only 3% of the supposed peak!
Sounds like they have not got up to date info, values are declining much harder than this, following actual sold prices they are selling for hundreds of thousands under RV.
An example is REINZ saying Wellington Central declined -5.9% last month and corelogic here is saying that Wellington Central fell only -1.2% over 3 months.
That's what I am seeing to. The fall/wee valley/blip/drop/crash whatever, is accelerating. As mentioned the stats this is based on is a bit behind the latest sales, so that would make sense.
It is interesting to watch the Lockdown bubbles in just about everything heading back towards their start point of early 2020. All the charts look similar. This will be the first stop.
Shows how irrational exuberance works.
Hutt Valley Market Update 30th May
The big news this week continues to be the high number of rental listings and the reduction in rental prices (averaging $70 between the original listing price and current listing price) in order to get the property rented.
The hutt market is defintiely starting to favour renters and there are a number of brand new 2 bedroom townhouses available for between $550 and $650 in central hutt. Six months ago these would have attracted rents of $650+
Poor rental yields will only exacerbate the reduction in house prices as landlords, property developers and FHB's looking to upgrade, try to offload their houses in the bottom quartile of the amrket (ie those houses selling for less than $750K)
Current Market Listings
613 houses on the market- down 3 on last week. For the last 3 weeks listings has ranged between 610-620.
Based on the REINZ data which showed that 96 sold in Feb and 104 sold in March and 98 in April giving an average sale of 25 houses per week– 613 houses means there is 24.5 weeks stock on the market.
I am still expecting given the withdrawals and low number of listings for the number of listings to fall to around the mid 500’s by mid winter ie late June/early July before picking up again in August.
House Price Reductions
309 houses have a listed price
57% of the houses listed with a price have reduced their price since listing
The average markdown has risen this week from 83K to 85K.
Of those that have listed prices (pool 309) -34 have reduced their prices by 100K
5 have reduced their prices by over 200K and 1 has reduced their prices by 300K with the biggest reduction been 350K (a total 20% reduction) Last week there were 2 properties that had reduced by 300k – the other one has been removed from the market unsold.
The data continues to show the majority of houses listed are under 900K. The Median house price for all 613 listings is now 830K. (Steady on the last two weeks and the lowest Median YTD – previous low was $839K)
The latest QV valuations (valuations by QV which are updated every month and give an approximation of a houses value) have dropped $130K since Jan for the Hutt.
In April the QV valuation had dropped 80K – approximately 20K a month since the start of the year but this escalated in April – dropping 50K in one month.
Meanwhile Homes based on last weeks update is inline with QV and indicating there has been an approximate $130K drop on house prices in the Hutt valley– since the peak which they are indicating was early Nov 21. According to homes prices are back to June 21 prices – so flat with this time last year.
Houses sold vs houses removed
My records show 176 houses listed with a Price have sold YTD (up 10 from last week).
I have records of a further 149 houses (unchanged from last week) that have been removed from the market unsold YTD.
18 of those houses removed from the market have been listed on the rental market
The total number of houses removed from the market in the last 6 weeks is 73 (this compares to about 5 houses delisting a week over the previous 14 weeks).
Length of time on the Market
- 445 of the houses have been on the market for over 30 days - 73% (last week it was 441)
- 299 of the houses have been on the market for over 60 days - 49% (last week it was 291)
- 168 of the houses have been on the market for over 90 days – 27% (last week was 177)
- 107 of the houses have been on the market for over 120 days (last week was 91) - 17%
The number of houses on the market over 60 days is just under 50%. This has risen from 32% of houses in mid March (one in three) and just over 1 in 4 houses have now been on the market more than 3 months , 1 in 6 have been on the market over 4 months.
The time to sell is getting longer and longer. Anybody looking for a quick sale of their property would need to be well under the QV valuation or have a very attractive property at a very attractive price.
A real estate agent did advise most houses are going conditional with subject to sale as the most common condition in some cases there is chain effect occurring where there are now several houses all in the chain subject to sale. So anybody with cash is going to be an attractive buyer at the moment and could probably get a premium discount on the asking price.
Rental Market
Meanwhile the rental market has 201 properties for rent (down 9 on last week), and up 79 on this time last year – when just 122 houses were for rent.
Average rental price reduction is $71 a week (up $9 on last week and up $22 on a month ago) and 40% have dropped their prices since listing.
As noted last week I have also been noting how many properties are listed for rent over $650 a week.
At the moment the percentage of properties listed at $650 is 43% - last week it was 42%. Still well below the 53% of houses listed over $650 on the 23rd March.
Thank you. I really look forward to your updates. Do you have records for how many houses were listed this time last year? Thanks again. Jo
Hi Jo - this time last year there were roughly 220 houses listed - at that time roughly 40 houses a week were selling - so there was just on 5.5 weeks SOH based on sales at the time.
Two things have occurred in the market since this time last year- number of houses listed has almost tripled and the number of houses been sold is down 40%.
A few factors driving this- a lot more houses are been developed in the area (approx 100 listings are new builds), looks like a large number of people are exiting rental stock and I have it on heresay a lot of people are leaving Wellington. Some are probably relocating overseas but I am hearing people are heading to "greener pastures" Christchurch, Tauranga and up the coast to Kapiti or inland to the Wairapa
It's just the beginning. The price will be considerably lower if sellers are forced to sell to the best offer they can get, but at the moment they're sticky on the way down.
Imagine if every offer presented for a property for sale was lodged on homes.co.nz, I suspect it'll paint a very different picture.
I love the term, 'profitless boom'
https://www.vice.com/en/article/dypaev/rich-bankers-say-your-life-is-ab…
Yes, that would be interesting - Asking Price, Lowest Offer, and Final Selling price together would make the whole thing a lot more transparent.
Makes sense. The big cities (barring ChCh) are so overpriced, they've got a the possibility of dropping significantly.
These days, you can live and work wherever you want... which means the nice regions of NZ are looking more attractive from a lifestyle perspective with little to no career hit anymore.
For that reason, I think the values in good regional hubs in NZ will be far more resilient to this downturn in the housing market than Auckland / Welly etc.
This is what I'm seeing in Thames/Coromandel area.
Prices have reduced slightly. Longer time to sell and usually by PBN or withdrawn.
The top end of the market is flatlining whereas those price brackets just below have adjusted. Asking price vs quality IMO is still out of touch in that median price bracket.
Historically this has not been correct, I suspect not enough people who can work from anywhere will be able to move to the regions to make a difference, as the highly mobile high tech WFH crowd are either mortgaged or off to London on their big OE.
History shows the regions get way overvalued in the boom years and smashed in the bust, this time everywhere is way way overvalued, here comes the Irish style 46% from peak bust........
Queenstown may actually be worst impacted....
These days it might be wise to choose "good regional hubs" based on the healthcare capacity and quality there.
There is a lot to be said for a good hospital.... but when you stand back and look at the state of NZ Healthcare where would you suggest?
BoP - ok but you have to travel to Hamilton for Radiation treatments....
Whangarei - enuf said - shite ozing from walls
The Tron? - ???
South AKL - Middlemore is a disaster waiting to happen, too small to old, under too much stress.
WGTN - OK just dont be sick in an Earthquake....
CHCH - maybe the best of the bunch but massively undrstaff....
I think actually the Sunshine coast could be a go, big new Hosipatals north of brissie
The nice regions of New Zealand? By this I assume you mean regional centres? People live in cities for lots of reasons but one very important one is that it's a city and people like living in cities, variety, scale, vitality. I don't see that pull diminishing too much over time.
This actually aligns with my prediction that New Zealand won't be in recession soon. There is still room for OCR increases and OCR will stay high for a while. Housing price shouldn't be RBNZ's concern. What they really need to focus on is inflation at the moment. The media, banks and some commenters here are the real doom and gloom merchants.
Remember last time when we talk about the economy was going to be in recession? What happened after? RBNZ slashed OCR 0.75% and removed LVR. Then this inflation happened. It would be stupid that no one actually learn from this lesson...
The real opportunity was 5 years loans for under 3% debt. So many people obsess over buying a property and sleepwalk from then on with their loans. If you had locked in at 2.89 on 1mil for 5 years, vs 2.19 and then taking 5.5 for 4 now the difference is huge.
Ain't hindsight just grand?
Yes, at the time people were saying interest rates were going to get much lower. They looked quite high back then compared to the UK. There was talk of a negative OCR.
Even the RBNZ was implying that interest rates would go much lower.
Orr was in every newspaper talking about negative rates, and demanding that the banks be ready for them.
Yep, which is why I fixed for 2 and 3 years, not 3 and 5. Got greedy for future savings.
Credit cycle being replaced by an economic cycle. Taking into account debt to income ratio, this NZ property market is probably going down 50% to 60% from the peak.
Agreed. The NZ speculative property market is about to have its 87 Sharemarket moment...
Ah yes Corelogic with it's 3-month old data telling us what REINZ has already told us.
More air from bubble being released, still some people can’t see it. Housing price crashes are in slow motion could take 3 years but in the end a 50% drop will be very least that will happen.
It's a great time to be - old.. lol
https://www.newstalkzb.co.nz/on-air/early-edition/opinion/kate-hawkesby…
https://www.dailymail.co.uk/news/article-10843723/NZ-Professor-says-Kiw…
In Northland, from the chart, I see a 27% increase for the 12 months to May 22, in the Far North. Whangarei up by 17.6% and Kaipara 24.6%.
And North Shore is up by 14.2%.
It seems to me that the crazy growth in house inflation had stalled, no market crash is evident, and I'm not even sure that come 31 Dec 22, that a meaningful decline will show.
Because a lot of people buy and sell in the same market they unwittingly conspire to keep the prices stable.
These price’s increases is because Rates were at emergency levels and FOMO. These drops in price’s are just the start of major downturn with inflation and rates still climbing the crash will be inevitable. Lots of people fixed mortgage rates at very low levels for one or two years once this Needs to be refinanced payments will have huge increase and people with million dollar loans will be in serious financial trouble. I have noticed a lot of building companies going insolvent this year and this is just start.
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