Average house price dropped more than $100k this year, QV figures show

RNZ

12 Dec, 2022 06:02 PM2 mins to read

The biggest fall in value occurred in Wellington, down 5.2 per cent in the three months ending November. Photo / Mark Graham via Getty Images, File

From RNZ

The average house value has fallen by more than $100,000 from the start of the year, as the residential market slowdown continues.

Quotable Value’s house price index for November shows homes decreased in value by 2.9 per cent nationally over the three months ended November, with the average value at $945,568.

The fall was smaller than the 3.9 per cent quarterly drop reported at the end of October.

QV said the figure was 10.2 per cent lower, or $107,747 less than the start of 2022.

It said the closest comparable year to 2022 was 2008 during the global financial crisis when home values fell by an average of 9 per cent from January to November, and 9.6 per cent for the calendar year.

“It’s been a crazy couple of years in real estate with massive growth followed by a pretty significant correction. The last time we saw anything similar to this was after the GFC in 2008, but that was an entirely different kettle of fish to what we’re going through right now,” QV chief operating officer David Nagel said.

QV chief operating officer David Nagel. Photo / Supplied

“Home values increased by nearly 30 per cent nationally in 2021. In 2022, they’ve fallen by less than half that much on average, so there’s clearly still some way to go until we’re back at pre-pandemic levels.”

For the three months that ended November, the biggest fall in value occurred in Wellington, down 5.2 per cent. It was followed by Hamilton and Palmerston North, both falling 4.4 per cent.

Auckland’s average value fell 3 per cent, while Christchurch was down 1.4 per cent.

Queenstown Lakes was the only urban area that saw growth in the three months, up 1 per cent.

In the 11 months that ended November, Wellington led the pack again, seeing a fall in value of 18.7 per cent. It was followed by Palmerston North, down 14.5 per cent.