Property values decline further in May | Real Estate Market Updates

According to the latest industry reports, the month of May witnessed a further decline in property values across New Zealand, with a decrease of 0.7%. The trend of declining property values continues for the last several months in a row. However, there is a glimmer of hope as the annual rate of change has shown signs of easing, indicating that the current downturn may be reaching its conclusion.

On a year-on-year basis, average property values in New Zealand were down by 10.2% compared to the same month last year, amounting to a staggering $121,000 below their peak. Despite this decline, they are still significantly higher, by $194,000, compared to the levels recorded in March 2020. The recent data suggests a slight improvement, with the annual rate of change easing from -10.3% in April.

Commenting on the situation, Hadar Orkibi of WeBuyProperty.co.nz, pointed out several indicators. These include the moderation of house price falls and the latest cash rate forecasts from the Reserve Bank, which suggest that the Official Cash Rate (OCR) has reached its highest point and is expected to stabilize. These positive signs provide a glimmer of hope for homeowners who have been grappling with the current market conditions.

It is important to note that the information provided in this article indicates a decline in property values in New Zealand during the month of May. However, it is worth considering the potential impact of various factors such as market fluctuations, economic conditions, and government policies, which can influence the property market’s trajectory.