Quotable Value (QV) says house prices were "relatively static" last year and are likely to stay that way as the market heads into 2025.
"Our latest QV House Price Index shows residential property values edged upwards by an average of just 0.1% nationally in the December quarter, which was not enough to finish the year in the black," QV Operations Manager James Wilson said.
"The average [New Zealand] home is now worth $902,414, which is 0.3% less than at the start of 2024, and 15.2% below the market's peak just over three years ago."
"Now that flattening trend looks set to continue throughout the early part of 2025, with little evidence to suggest that property values are set to grow substantially this summer," Wilson said.
"It's been steady as she goes throughout much of last year, and it looks like it's going to stay that way for a while yet."
"It's a new year, but the same restraining factors are still very much at play, including sustained weakness in the labour market, a high cost of living, credit constraints and a surplus of properties for sale," said Wilson.
"The marked uplift in demand for housing that has come as a direct result of falling interest rates hasn't yet converted into any significant price pressure, so we're only seeing very small pockets of growth."
"However we also haven't seen quite so many reductions this quarter in particular, which indicates that we're now at or very close to equilibrium in the market," Wilson said.
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"The average [New Zealand] home is now worth $902,414, which is 0.3% less than at the start of 2024, and 15.2% below the market's peak just over three years ago."
"Now that flattening trend looks set to continue throughout the early part of 2025, with little evidence to suggest that property values are set to grow substantially this summer," Wilson said.
"It's been steady as she goes throughout much of last year, and it looks like it's going to stay that way for a while yet."
"It's a new year, but the same restraining factors are still very much at play, including sustained weakness in the labour market, a high cost of living, credit constraints and a surplus of properties for sale," said Wilson.
"The marked uplift in demand for housing that has come as a direct result of falling interest rates hasn't yet converted into any significant price pressure, so we're only seeing very small pockets of growth."
"However we also haven't seen quite so many reductions this quarter in particular, which indicates that we're now at or very close to equilibrium in the market," Wilson said.
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Greg Ninness is the Property Editor of interest.co.nz. He has worked as a business journalist since 1990 and covered the commercial and residential property markets since 2005. This article was first published HERE
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