PHOTO: FILE
New Zealand’s housing market is experiencing volatility, as indicated by recently released CoreLogic data indicating a leveling off. In April, the average nationwide house prices saw a slight decrease of 0.1% after experiencing modest gains in previous months. This trend is particularly pronounced in Auckland, the largest city, where property values have declined by 0.6%.
Recession drives down property demand | realestate.co.nz (WATCH)
Currently, the average house price across the nation stands just above $900,000. One contributing factor to the sluggish demand is the rise in interest rates, with the average fixed-rate mortgage nearing 7%. Despite this, first-time home buyers are taking advantage of stagnant prices, with their portion of sales increasing by 20% according to the Reserve Bank.
However, there has been a significant drop in the construction of new homes, evidenced by a 25% decrease in building consents. 1News Business Correspondent Katie Bradford delves into the sentiments of buyers and sellers in the accompanying video.
SOURCE: 1NEWS