CoreLogic’s House Price Index rose 0.5% in March, taking values 1.1% higher over the first quarter of 2024[i].

The average property value across NZ now stands at $934,806, up 3.2% ($29,361) from September’s trough.

Wellington led the way, rising strongly (0.9%), with Christchurch, Dunedin and Auckland also showing gains (0.4-0.6%).

Consequently, CoreLogic NZ Chief Property Economist Kelvin Davidson described New Zealand’s property market as “not too hot, not too cold”. 

Kelvin acknowledges that mortgage rates continue to pose challenges for borrowers. However, with the onset of the new tax year and the introduction of 80% mortgage interest deductions, property investors can anticipate improved cash flow. 

Additionally, Kelvin hints that the likelihood of the first official cash rate cut in the upcoming cycle is drawing nearer.

He added, “We’ve also seen a turnaround for listing activity in the first few months of 2024, with a good flow of fresh properties hitting the market, raising the choice for buyers and taking a bit of heat out of property prices.”

Regional property bouncing back

Outside the main centres, March’s data showed that Invercargill, New Plymouth, Napier, and Rotorua all increased by at least 1%.

With the broad upturn, albeit gradual, several regional markets have witnessed positive shifts in their annual house price growth rates. According to CoreLogic, Hastings, Invercargill, and Queenstown have experienced annual gains of approximately 3% or more. 

Keith Niederer, Network Manager NZ for Raine & Horne, highlighted the current dynamics of the real estate market, emphasising the opportunities available for buyers and sellers. He noted that the increased listings across many parts of New Zealand indicated improved vendor confidence.

“Concurrently, prospective buyers are presented with a wider selection of properties. However, they must act promptly, as a shift in interest rates could swiftly tip the market balance in favour of sellers,” Keith explained. 

He stressed the importance of obtaining loan pre-approval, asserting that it enables buyers to approach transactions with confidence and ease. “Being pre-approved for a mortgage not only positions you ahead of competing buyers but also enhances your prospects of securing your desired property,” Keith added.

Whether you want to sell or buy a property, don’t hesitate to contact your nearest Raine & Horne office.