‘Rapid decline’ in annual house price growth

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The housing market turned in buyers’ favor as rising interest rates and tighter lending restrictions pushed values ​​down in major centres.

The QV home price index of home values ​​has seen the biggest quarterly decline in more than a decade.

The national average home lost 0.6% in value in the three months ended March, down from a 2.3% increase in the quarter ended February.

“We are seeing a fairly rapid decline in the annual growth rate – especially compared to the early months of 2021 when the market was peaking,” said QV chief executive David Nagel.

“We are seeing much slower months of growth and even some contraction in value at the start of 2022.”

The national average value was $1,046,636, which was still 18% higher than a year earlier.

March data from QV confirmed a report this week from CoreLogic pointing to a slowing market.

Nagel said major centers were hardest hit by the downturn, with average values ​​down 1.5% in the Auckland region.

“If you just look at March in isolation, there are now nine out of 16 urban areas that are showing a decline in value, including the major centers of Auckland, Hamilton, Wellington, Christchurch and Dunedin,” Nagel said.

“Last month we saw only two major urban areas register a reduction in value levels over the three-month period to February, but this month we saw seven out of 16 areas show a reduction in value levels. value.”

Sales volume also stabilized, while the number of listings increased.

“With the massive increase in listings over the past two months, the balance of power has shifted firmly into buyers’ hands, after such an extended period of seller’s market,” Nagel said.

“We will likely see a gradual and continued decline in value levels for some of the locations that have seen the strongest value growth between 2000 and 2021, while regions will likely continue to see a mix of stagnant growth over the next 12 month.”

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