Residential property values continue declining with the average value of New Zealand homes dropping by almost $13,000 in October.
According to property data company CoreLogic's House Price Index, the average value of all residential dwellings throughout the country was $964,202 in October. That's down $12,956 from September, and down $79,059 since average housing values peaked in March.
The average dwelling value in the Auckland region was $1,366,758 in October, down $153,583 since March.
Average dwelling values are now lower than they were three months ago in almost all of NZ's urban areas, with just three - Otorohanga, Queenstown-Lakes and Southland, showing an increase in average values over the three months to October.
The fall in values appears to be consolidating in many main and provincial centres, with average values in October being lower than they were in October last year in Auckland, Hamilton, Tauranga, Napier, Hastings, Whanganui, Palmerston North, the Wellington Region, Masterton, Nelson and Dunedin.
The chart below shows the current average value in all urban areas and how much it has changed over three and 12 months.
"This market downturn continues to compare unfavourably to the last major downturn, following the Global Financial Crisis [GFC] in 2008," CoreLogic NZ Head of Research Nick Goodall said.
This country's average dwelling value fell by 4.5% in the three months to October, which exceeded the worst quarterly fall of 4.4% following the GFC.
"Stretched affordability is constraining the ability and willingness of all buyers to get or extend a mortgage, while property investors looking to grow their portfolio are also faced with tighter tenancy regulations alongside increasing costs and reducing rental growth," CoreLogic said in its October report.
"This all leads to reduced demand and contributes to falling prices for our largest asset."
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| CoreLogic House Price Index | |||
| October 2022 | |||
| Territorial authority | Average current value | 3 month change | 12 month change |
| Far North | $699,720 | -2.6% | 8.1% |
| Whangarei | $790,244 | -5.4% | 3.0% |
| Kaipara | $864,230 | -4.2% | 9.6% |
| Auckland - Rodney | $1,334,762 | -5.4% | 4.5% |
| Rodney - Hibiscus Coast | $1,249,240 | -5.7% | 2.0% |
| Rodney - North | $1,408,240 | -5.4% | 6.5% |
| Auckland - North Shore | $1,523,554 | -4.0% | -0.5% |
| North Shore - Coastal | $1,742,931 | -4.4% | -0.3% |
| North Shore - North Harbour | $1,472,221 | -2.8% | 0.8% |
| North Shore - Onewa | $1,221,620 | -4.8% | -3.8% |
| Auckland - Waitakere | $1,090,545 | -4.6% | -1.6% |
| Auckland City Isthmus | $1,573,813 | -4.7% | -3.0% |
| Auckland City - Central | $1,331,341 | -3.9% | -1.8% |
| Auckland City - Islands | $1,678,021 | -5.7% | 7.3% |
| Auckland City - South | $1,419,809 | -4.8% | -3.2% |
| Auckland_City - East | $1,965,271 | -5.1% | -4.8% |
| Auckland - Manukau | $1,220,576 | -5.1% | -0.8% |
| Manukau - Central | $946,256 | -6.0% | -2.4% |
| Manukau - East | $1,515,126 | -3.9% | -3.8% |
| Manukau - North West | $1,064,242 | -5.7% | 0.9% |
| Auckland - Papakura | $1,002,555 | -5.8% | 3.9% |
| Auckland - Franklin | $980,705 | -4.3% | 5.5% |
| Thames Coromandel | $1,244,011 | -5.2% | 10.5% |
| Hauraki | $653,706 | -3.8% | 16.9% |
| Waikato | $776,607 | -4.9% | 14.9% |
| Matamata Piako | $732,285 | -3.1% | 8.4% |
| Hamilton | $843,485 | -3.6% | -1.2% |
| Hamilton - Central & North West | $782,454 | -4.6% | -2.1% |
| Hamilton - North East | $1,044,773 | -3.1% | -0.1% |
| Hamilton - South East | $776,839 | -4.2% | -3.1% |
| Hamilton - South West | $746,855 | -3.5% | -0.5% |
| Waipa | $885,602 | -1.5% | 7.2% |
| Otorohanga | $596,760 | 14.7% | 13.6% |
| South Waikato | $463,546 | -1.8% | 12.8% |
| Waitomo | $392,391 | 2.5% | 14.3% |
| Taupo | $874,525 | -1.2% | 6.0% |
| Western BOP | $993,315 | -6.7% | 6.2% |
| Tauranga | $1,075,551 | -6.8% | -1.5% |
| Rotorua | $683,049 | -3.2% | 2.5% |
| Whakatane | $732,608 | -3.9% | 4.5% |
| Kawerau | $402,710 | -6.6% | 2.1% |
| Opotiki | $575,205 | -1.9% | 20.7% |
| Gisborne | $630,980 | -4.5% | 2.4% |
| Wairoa | $394,146 | -6.8% | 17.7% |
| Hastings | $813,431 | -5.8% | -4.8% |
| Napier | $789,200 | -6.0% | -9.1% |
| Central Hawkes Bay | $611,419 | -6.4% | 5.4% |
| New Plymouth | $734,401 | -0.7% | 10.7% |
| Stratford | $490,106 | -3.8% | 6.2% |
| South Taranaki | $450,464 | -2.4% | 13.5% |
| Ruapehu | $396,508 | -0.3% | 8.2% |
| Whanganui | $521,393 | -6.2% | -1.3% |
| Rangitikei | $447,699 | -10.1% | -0.4% |
| Manawatu | $638,154 | -4.4% | -1.9% |
| Palmerston North | $675,403 | -6.2% | -7.8% |
| Tararua | $448,246 | -3.3% | -0.1% |
| Horowhenua | $591,158 | -7.4% | -6.6% |
| Kapiti Coast | $892,990 | -5.6% | -7.4% |
| Porirua | $867,048 | -5.6% | -11.7% |
| Upper Hutt | $784,063 | -8.3% | -13.1% |
| Lower Hutt | $822,278 | -9.5% | -16.8% |
| Wellington City | $1,091,080 | -6.9% | -11.7% |
| Wellington - Central & South | $1,028,624 | -8.6% | -11.8% |
| Wellington - East | $1,205,526 | -7.1% | -10.3% |
| Wellington - North | $1,034,261 | -6.2% | -12.1% |
| Wellington - West | $1,261,368 | -4.8% | -10.2% |
| Masterton | $602,914 | -11.4% | -9.3% |
| Carterton | $680,903 | -4.2% | -8.1% |
| South Wairarapa | $834,573 | -10.9% | -5.1% |
| Tasman | $819,896 | -5.6% | 0.1% |
| Nelson | $815,901 | -4.1% | -1.6% |
| Marlborough | $722,588 | -2.3% | 4.0% |
| Kaikoura | $634,428 | -5.5% | 12.3% |
| Buller | $315,119 | -1.4% | 11.7% |
| Grey | $352,281 | -3.4% | 10.8% |
| Westland | $390,096 | -0.3% | 5.8% |
| Hurunui | $617,780 | -1.7% | 19.0% |
| Waimakariri | $723,527 | -1.5% | 14.4% |
| Christchurch | $754,907 | -2.1% | 8.8% |
| Christchurch - Banks Peninsula | $788,225 | -8.4% | 9.0% |
| Christchurch - Central & North | $860,537 | -2.3% | 7.3% |
| Christchurch - East | $586,492 | -1.8% | 10.1% |
| Christchurch - Hills | $1,050,929 | -1.5% | 13.1% |
| Christchurch - Southwest | $719,393 | -2.3% | 8.1% |
| Selwyn | $839,589 | -2.6% | 7.0% |
| Ashburton | $530,583 | -0.1% | 16.2% |
| Timaru | $512,315 | -1.4% | 8.7% |
| MacKenzie | $711,378 | -5.4% | 13.4% |
| Waimate | $423,615 | 0.0% | 13.1% |
| Waitaki | $492,974 | -0.8% | 9.5% |
| Central Otago | $770,283 | -2.3% | 7.1% |
| Queenstown Lakes | $1,684,524 | 0.9% | 10.3% |
| Dunedin | $645,271 | -4.2% | -5.5% |
| Dunedin - Central & North | $661,658 | -3.5% | -4.9% |
| Dunedin - Peninsular & Coastal | $604,762 | -6.0% | -5.7% |
| Dunedin - South | $611,866 | -4.6% | -4.8% |
| Dunedin - Taieri | $673,419 | -3.9% | -6.9% |
| Clutha | $392,014 | -2.6% | 0.1% |
| Southland | $494,637 | 1.4% | 13.0% |
| Gore | $393,211 | -2.6% | 5.3% |
| Invercargill | $457,951 | -3.5% | 1.0% |
| Auckland Region | $1,366,758 | -4.8% | -1.1% |
| Wellington Region | $958,974 | -7.5% | -13.1% |
| Main Urban Areas | $1,071,741 | -4.9% | -2.9% |
| All of Aotearoa | $964,202 | -4.5% | -0.6% |
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60 Comments
Core Logic is becoming more accurate as the old data averaged over three months now reflects the changes at the coal face month on month. HPI coming in 2 weeks folks.
Be quick!
Must be sweet watching your mortgage repayments rise on a house that doesn't exist yet 👍
Imagine that pain in China... people will be jailed for defaulting on vapour houses/apartments...
Imagine that pain in China... people will be jailed for defaulting on vapour houses/apartments.
TBH, I don't think the CCP will throw allow people to be thrown out of their homes.
Hi Pa1nter.
I'm hugely thankful that I found salvation in the scriptures of The Prophet. Through his spiritual Iearnings I was able to confirm my suspicions that touching lousy Auckland housing was a Very Bad Idea (even using a 10ft pole and a rubber soaked in bleach).
The road to financial ruin is paved with overpaying using leveraged debt, and as you quite correctly point out, the bankers still want their pound of flesh. For ever and ever and ever.
I am now filled with blissful joy that I am instead treading a financially sustainable path in these deeply troubled times, having narrowly escaped the twin horrors of the bursting of world's greatest housing bubble and the worst government in living memory.
As a skilled professional and successful business owner with a diligent savings record, I was instead able to build an incredible family home in a great location while only being required to borrow little over 1x my annual income. I shall be completely unencumbered within a year or two leaving me to focus on Things That Actually Matter.
Therefore, to your great chagrin, interest rates do not bother me, at all, because I respected the wise teachings of The Prophet and did not prostitute myself to the charlatans, spruikers and bankers for the "privilege" of subsisting in the future slums of Auckland.
✈️✅👍
What a load of blasphemous tripe.
TTP
What a load of blasphemous tripe.
Brock Landers is more full of himself than sure of himself.
TTP
It appears you were so overeager to spray your mind vomit over the internet that you clicked the submit button twice there Tim.
I suggest taking a cold shower next time.
Best you read things twice, Brock, to help the message sink in……
You show the classic signs of being bone from the neck up. ☹️
TTP
A genuine couple of questions for Tim, Pa1nter etc to try and understand where you are coming from.
- What do you see are the benefits of the ever-increasing house prices (you subscribe to and speak of constantly) to New Zealand as a whole?
- Why do you call out people as DGM's when us 'Doom Goblins' are saying house prices are out of all bounds of reality? They are causing an ever-increasing disparity between the haves and have-nots due to the completely irrational price levels - which in turn is contributing hugely to the societal breakdown all around us?
Crickets 🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜🐜
Hi Ammok,
To address your questions above:
1. "Ever-increasing house prices" suggests that your thinking is fallacious. The housing market is cyclical, as myself and other people have often stressed here. If you kept up with things, you'd know that the NZ housing market is now in a downswing - with activity levels and house prices falling. After a while the market will recover - move into an upswing - and activity levels and prices will increase. Housing cycles are nothing new: they've been observed and documented for a very long time. For an excellent discussion of economic cycles, I refer you to the work of Charles Schumpeter.
2. "DGM" and "Doom Goblins" are useful terms. They're not just names/labels. They are also descriptive - and easily understood. (Most of us can understand the difference between a Doom Goblin/ DGM and someone who's more enlightened/ positive/ innovative/ successful/ pro-active.) Until someone comes up with better expressions, I shall willingly continue using Doom Goblin/ DGM. I recommend you do the same. Finally, I don't believe that Doom Goblins do anything to boost social efficiency or distributive equity. They tend to be "takers" rather than "givers". I find their relentless moaning and whinging tiresome. And much of what they write here is misleading and deceptive.
Regards,
TTP
Tim owes FHB's an unreserved apology and an explanation. One year he's grateful for the assistance "Doom Goblins offer (See below ) then the next he is abusing them. In the years following he is being fined millions for overcharging the innocent and unsuspecting home buyers. The question all along is, how can this individual sleep at night knowing that he is conning people into homes at prices that were deemed unsustainable in 2016 by the then ANZ boss, followed by Westpac in 2018 and the RBNZ today.
https://www.nzherald.co.nz/business/bank-boss-warns-of-property-market-…
https://www.interest.co.nz/property/93884/westpacs-david-mclean-says-fl…
Tim is out to miss-lead and deceive at every opportunity. He's been doing it for years.
by tothepoint - d… | 27th Jun 17, 4:12pm
“Alas, my chances of buying that idyllic Ponsonby villa at a sharply discounted price seem to be sailing away from me. What a disappointment!”
“CJ099 et al, please continue with your attempts to talk the market down. You need to try harder........ I'm relying upon you!”
tothepoint - d… | 27th Jun 17, 4:54pm
“For folks like me, waiting for Auckland house prices to come down would be a poor strategy. The market in Auckland can't be relied upon to stoop down and pick us up”
“Guys like you and CJ099 are welcome to continue to try talking the market down. If you're successful, people like me will be enormously grateful to you. Please have no doubts about that”
Enough said!
Tell that to the suckers buying off the plans from TTP .
https://www.trademe.co.nz/a/property/residential/sections-for-sale/hawk…
What a shame, all covenanted.
Howdy neighbour!
If I drank coffee I would have spat it out all over my keyboard when I saw the prices on those plots, considering just round the corner in the Arataki block they were in the $300K range 4 years ago.
Havelock North really is right up there with the most boring places on the planet.
We’re seeing an orderly release of pressure across the housing sector.
Relative to the price gains since the GFC, the weakening of house prices in 2022 might be seen as a bit timid/lame - with scarcely a mortgagee sale to be found.
Notably, the labour market is tight (and becoming tighter) with a hefty balance of employers reporting it difficult to attract staff. Unemployment levels remain low.
There’s a good chance that the housing market will find its footing - led by first-home buyers - sometime in the new year. As always, home ownership is a hotly pursued goal of NZers.
TTP
There's also a good chance that the "release of pressure" will continue for all of next year, with house prices continuing to fall at 1-2% per month throughout 2023. There will be further interest rate increases. We haven't even seen the full impact of the current rates, due to the time lag caused by fixed term mortgages that will need to be re-fixed at higher rates in the coming months.
A genuine couple of questions for Tim, Pa1nter etc to try and understand where you are coming from.
- What do you see are the benefits of the ever-increasing house prices (you subscribe to and speak of constantly) to New Zealand as a whole?
- Why do you call out people as DGM's when us 'Doom Goblins' are saying house prices are out of all bounds of reality? They are causing an ever-increasing disparity between the haves and have-nots due to the completely irrational price levels - which in turn is contributing hugely to the societal breakdown all around us?
TTP, interested what you think on the below... that labour market tightness you say is going to underpin house prices is in essence occuring due to onshoring of production and offshoring of our labour force in pursuit of higher wages. This is all inflationary and gives the RBNZ further ammunition for rate rises. Despite the tight labour market, the housing market is still falling. Global tightening I'm certain will eventually push us over the edge and we will see an increase in unemployment which will be when houses really start coming off.
Not sure I’ve ever seen a better opportunity for the savvy investors out there.
Over leveraged little empire’s will now be seeing rather large cracks appearing in their financial positions.
Ouchy ouch
Fantastic
Another 20% would be great.
Thank You to the red team for giving young Kiwi,s some hope and a chance to dream again.
The blue team offering more greed for the top end of town.
Will make for a easy choice.
Aren’t we served by such inspirational, forward thinking and competent political parties and leadership.
House prices have skyrocketed under Labour so not sure what you mean?
I remember house prices skyrocketing under Key, and him denying there was a housing crisis.
He even campaigned on tackling it.
I do wonder if they are being sarcastic .......
(anything written on this website should be taken with a big grain of salt - except what I say :-) )
Thank You to the red team for giving young Kiwi,s some hope and a chance to dream again.
Be careful. Don't be surprised if a housing bust takes down the whole economy. Economic structures are interconnected. They don't operate like siloes.
Fantastic then we can start again and fix it.
I see red, I see red, I see red.
Prices continue to head back to normality, away from the leveraged stupidity of the last five years. The few speculatlating....boohoo. Those just wanting the security of their own shelter...yay.
The fall so far is nothing compared to fast and steep rise.
Average price in Auckland is 1.37 Million indicating many on average are able to borrow 1.1 million and able to pay mortage of $1600 to $1700 comfortably without any distress. $110000 earning is required to pay out of family earning.
Still a long way to go before any meaningful dent in house price.
Go Otorohanga!
Indeed. Clearly shows the retreat has only just started in some regional locations. Queenstown lakes still gang busters and a few other not noticing what's spreading out from Awkland and Welly either.
Give. It. Time. Always stickier and slower on the way down, and a lot of 4 and 5 year cheap loans sheltering the speculative still out there.
Queenstown lakes still gang busters and a few other not noticing what's spreading out from Awkland and Welly either.
You believe that? I don't. Let me suggest that sales volumes are likely too low in Queenie to really understand what the reality is. Happy to be shown / proven wrong.
It seems hard to believe that West Auckland at $1,090,545, down -4.6% for 3 months and only -1.6% for the whole year.
I was under the impression that things had taken a hammering over the last twelve months yet it doesn't look very bad at all.
Too much noise about market crash but reality is that it has just soften when compare with rise since pandemic.
The Craic has only just begun.
The annual data is still perked up by the large rises late last year, especially in the lagged Corelogic data. The drop from peak will be significantly higher, about 20% for all of Auckland according to the more timely REINZ median data. Someone might have the even better drop from peak HPI value but this isn't so conveniently graphed.
https://www.interest.co.nz/charts/real-estate/median-price-reinz
West Auckland seems to be down about 17-18% from a year ago based on homes.co.nz numbers and asking prices.
It's a bloodbath out there. Any FHB who bought a year ago are being taken to the cleaners.
These numbers are lagged.
I feel a little bit bad for those regular Joe buyers that are not tuning into this news regularly and are still blissfully ignorant. Just going to their job everyday thinking it's all hunky dorey with their new home - until it isn't. Prices only decreased "a little bit" as the news suggests.
Probably stopped bothering to look at real estate altogether after making their purchase and now spend their time tuning into Netflix and scrolling past the property news
Its not that bad, hence I was calling single digit house price gains still for YoY down in Tauranga. Potentially go to drop faster now though because it was the last few months of last year that had the big gains so you could see some pretty big falls now until 1st Jan. Possible my single digit gains will go single digit losses, only 2 months before we find out. Its not really this year that I'm worried about, the shit may have just got started, 2023 could be the killer.
Tauranga are down 7.2% year-on-year on the most recent REINZ HPI, so far. Corelogic will catch up with this in a couple of months as their data slowly rolls in.
https://www.reinz.co.nz/Media/Default/Monthly%20Press%20Release%20Asset…
I was under the impression that things had taken a hammering over the last twelve months yet it doesn't look very bad at all.
Not if the sheeple are pyschologically and econmically dispostioned for it to be heading the other way. If that is the case, it is "bad."
The biggest Annual Drop and second biggest Quarter drop- is the Hutt Valley.
If only somebody had predicted this
Welcome back!
Hear hear! Made it back down the long road from perdition...
Still cannot work out why you got banned myself, there are some pretty bad personal attacks on here all the time and the culprits get off scott free. Probably not a good idea for you to go into it. Welcome back.
As this data is settlement and not sale at time of contract, it is now quite out of date. Core logic sees the start of the downturn as being March were REINZ has things turning Oct/Nov last year. This data is not useful to let us know where we are currently on the timeline, but is very detailed and useful to see the smaller areas- even if it’s a snapshot back. Comparing across the country this data highlights the areas with larger drops ( I am in Wairarapa), even then suspect these indexes are rolling averages, REINZ index for South Wairarapa is a 6 month rolling average, so data all has a lot of lag in it. Wairarapa sales have plummeted and the listings have gone from 190 ( just the raw count on Realestate.co.nz) mid last year to high 400s this week, I am expecting there will be 500 listings by the end of the week, the highest number I have ever seen. Wellington region had well in excess of 100 new listings yesterday - just one day!
So the reality is the speculative debt inflated bubble has most likely decreased further than these stats suggest.
Let’s wait and see what the REINZ house price index says in about 10 days. I suspect October figures will be as bad or worse than last months report.
And then add in another .75% increase in a couple of weeks.
Another 50bps only guaranteed, Orr sticks by his guns. Problem is there have been no words of wisdom for next year so if I was donkey deep in debt I would be worried about February 2023.
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