An abundance of listings means buyers are not in a rush to get deals over the line, says Cotality. Photo: RNZ
The housing market's trek to nowhere continues, with a marginal price rise in June, reversing the declines seen in April and May.
Data from property research firm Cotality (formerly CoreLogic) showed a 0.2 percent rise in median property values last month to $815,389.
Prices remained more than 16 percent below the January 2022 peak, and were down 0.7 percent from a year ago.
Cotality chief property economist Kelvin Davidson said an abundance of listings meant buyers were not in a rush to get deals over the line.
The weak job market was another factor.
"After all, it's not only the direct job losses that are problematic, but a reduction in security for those who have kept their jobs will also be weighing on the property market," Davidson said.
He said first home-buyers continued to make inroads amid soft market conditions, but investors were also returning.
"Mortgaged multiple property owners also remain on the comeback trail, particularly at the smaller end - those buying their first rental investment, or perhaps their second," Davidson said.
He expected weak market conditions to persist for the remainder of the year and expected median values to lift by 2 to 3 percent for calendar year 2025.
"The Reserve Bank's upcoming official cash rate decisions, including a probable hold next week on Wednesday 9th, aren't likely to sway the housing market too much," Davidson said.
He also did not read too much into the commentary around a potential boost to the economy and property market as existing mortgage holders repriced to a lower fixed rate.
"Some might save that extra cash or even keep their repayments the same and reduce the term of the loan," Davidson said.
"In other words, for every upwards influence on the housing market at present, you can probably find a downwards factor."
Annual change in dwelling values
- Tāmaki Makaurau Auckland down 1.0 percent to $1,079,747
- Kirikiriroa Hamilton up 2.0 percent to $752,125
- Tauranga down 1.1 percent to $915,657
- Te-Whanganui-a-Tara Wellington down 5.0 percent to $797,457
- Ōtautahi Christchurch up 2.5 percent to $678,364
- Ōtepoti Dunedin down 0.4 percent to $614,656
- Aotearoa New Zealand down 0.7 percent to $815,389
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