Corelogic stories
High listings and a subdued labour market are keeping buyers in control, even after New Zealand property values edged up 0.2% in June.
Stand-alone houses are regaining ground in Auckland and elsewhere, as Cotality's latest tool shows a patchy recovery with townhouses lagging.
Borrowers face a slower economic recovery, with the Reserve Bank signalling room for further OCR cuts as tariff uncertainty clouds mortgage rates.
Slower construction inflation should ease pressure on would-be buyers, with CoreLogic saying house-building costs rose just 1.1% over the past year.
House prices are still 17.6% below their post-Covid peak, with weak Auckland and Wellington values weighing on 2025 prospects.
Mortgage holders may get further relief early next year, but house prices are likely to rise only modestly as listings and unemployment stay high.
Lower interest rates are reviving property investor confidence, with national sentiment turning positive after the Reserve Bank’s OCR cuts.
Townhouses now account for nearly half of new dwelling consents, with Auckland driving most of the rise as buyers seek cheaper homes.
Buyers are still active, but high mortgage rates and new debt limits are making deals harder to close across the housing market.
Auckland and Wellington weakened again in May as high mortgage rates and plenty of listings kept the national housing market subdued.
High mortgage rates and weak sales are keeping the housing market subdued, even as CoreLogic sees prices rising about 5% this year.
Pressures on supply chains and builder capacity are easing, with annual residential construction cost growth falling to a seven-year low.
Vacancy constraints and rising rents have kept industrial property firm, but higher rates and a cooling economy are now testing demand.
Borrowers facing repricing will welcome a stable OCR, with the Reserve Bank now signalling cuts may not come until early 2025.
Buyer confidence is expected to lift mover activity in the coming quarters, but high mortgage rates may keep house moves subdued for now.
Slowing demand is easing pressure on New Zealand builders, with construction cost growth now running well below the 2022 peak.
Tighter stock on the market and a 7.5% rise in sales point to New Zealand housing volumes finally bottoming out after a long slump.
Signs of a floor are emerging as mortgage rates stabilise and sales improve, though values have still fallen 10.5% over the past year.
Mortgage rates may already be near their peak, but new borrowers still face tough affordability tests and repricing pressure for months.
Buyer caution is weighing on capital-city property sales, with the combined preliminary auction clearance rate slipping to a ten-week low of 50.3%.
