Life ‘very difficult’ for everyone in housing market, QV says
Tuesday, 9 April 2024
Prices are moving around but things are tough for both buyers and sellers, QV says.
There are more listings to choose from, but buyers face difficulty getting credit.
The biggest quarterly value increase recorded by QV was in Queenstown, up 2.7%. The biggest drop of the main urban areas was in Rotorua, down 2.7%.
Property market conditions are making life “very difficult” for everyone, QV says.
The property data firm has released its latest update, showing the average home value lifted 2.2% over the first three months of the year, by its measure.
It said the average home value was now 1.9% higher than the same time last year but still 13.1% below the 2021 peak.
Queenstown had the most growth over the quarter, at 2.7%. Wellington and Christchurch were at 2% and 1.5%, respectively.
Auckland was down 0.2% for the three months. Declines were also recorded in Whangarei, down 0.2%, Hamilton, down 0.1%, Rotorua, down 2.7%, and Hastings, down 1.4%.
QV operations manager James Wilson said the market was flat.
“We’re seeing only modest movement across the nation – mostly up, but some down – which is a fair reflection of a housing market that is continuing to find its footing again amidst some pretty strong economic headwinds.
“Although the pendulum has clearly swung in favour of prospective purchasers, with a relatively large number of properties on the market today giving them plenty of choice and helping to maintain downward pressure on prices overall, interest rates and credit constraints are continuing to make life very difficult for everyone.”
Wilson said a recent influx of new listings on to the market had more of a cooling effect on the main centres, particularly in Auckland.
“I expect to see this trend continue here and in some of our other larger cities over the next few months,” Wilson said.
“Immigration is helping to fuel demand, so it’s still unlikely that we’ll see any strong value declines as we now start to move into the cooler months of the year. Of course, it’s also equally unlikely that we’ll see any sudden strong home value growth. Once again, ‘flat’ is the best word to describe the market today and its trajectory, even with the recent reintroduction of 80% interest deductibility for landlords.”