Housing Market Slowdown: Christchurch home values drop by over 3%

New Zealand’s average house value was down annually for the first time in over a decade in September, according to the latest figures by Quotable Value (QV). This left the national average at $956,592, according to the property company’s latest house price index. The Christchurch market has been in pain too, with property values dropping by around 3% since June.

The increasing cost of living is causing home values to decline in many areas. There are also new houses being built, which will further reduce the value of homes.

The decrease in values was marked nine straight months of declining values nationally which had left the average 9.2% lower than at the start of this year.

The Reserve Bank’s recent decision to raise the Official Cash Rate (OCR) by another 50 points ensured that the decline would continue in the coming months as well .

The southern suburbs had the biggest decreases this quarter at 5.8% on average, followed closely by the central city at 5.5%. The region’s average home price decreased by 14.2% annually and 9.6% quarterly. This caused a decrease in the average home value of $903,259, which was 16.9% lower than at the start of this year.

Property segments and types have been affected differently in the changing economic environment. Properties which are old, have inferior construction, and are at undesirable locations are probably declining a little bit more. Stay tuned for more updates.