The New Zealand (NZ) property market faces significant challenges as house values have fallen for three consecutive months, and sales activity shows clear signs of slowing.
CoreLogic NZ’s latest property market update revealed that the total value of residential real estate fell $40 billion (US$25 billion) across the June quarter to $1.69 trillion.
The value of the average home has fallen 2.3 percent from its peak to just over $1 million.
Kelvin Davidson, the chief property economist at CoreLogic NZ, said the explosion of house values after COVID-19 has now given way to a “firm correction.”
“It’s possible the national average property value will ultimately drop by 10 to 15 percent by the middle of 2023, which broadly suggests we’re potentially halfway through this correction in both duration and scale,” he said….