Wellington remains the hardest hit of the main urban centres with the region's average home values down 21 percent on the year earlier. Photo: RNZ / Marika Khabazi
House values continue to fall but are still well up on pre-pandemic levels, giving buyers and sellers reason to pause.
The latest QV House Price Index for three months ended February fell 2.7 percent on the previous three months, and were down 12.6 percent on the year earlier.
The average national house value dropped to $920,366, with Auckland region values falling 4 percent over the past three months and Rotorua District topping the list with a 5.5 percent drop.
Wellington was the hardest hit of the main urban centres with the region's average home values down 21 percent on the year earlier.
Wellington's average home values were still 14.7 percent up on pre-pandemic levels, QV spokersperson Simon Peterson said.
"The housing market is still an awfully long way from its pre-Covid-19 levels, even after more than a year of very significant reductions across the motu.
"If residential property values continue to fall at their current rate, it could still take up to two more years to hit their pre-pandemic level nationally. That's a pretty big 'if', with the market expected to stabilise before then."
The Reserve Bank's latest increase to the Official Cash Rate would almost certainly see the market maintain its current downward trajectory for the time being, he said.
"Rising interest rates and credit constraints continue to have a tight strangle-hold on the market currently, as they have had for more than a year now.
"Many prospective home buyers are either unable or unwilling to purchase property right now while the cost of servicing a home loan is so high.
"Others are waiting to see when the market will bottom out, which obviously hasn't happened yet."