The Cotality Home Value Index showed a -0.3% monthly drop in July, which is a modest fall, but nevertheless the fourth in a row. Values are also down by -1.0% over the past quarter, -0.7% over the year, and remain -17.7% below the January 2022 peak. The current median value is $804,303, which is a fall of $173,058 from the peak.

Many parts of the country dropped in July

At a more detailed level, Tauranga saw a -0.7% fall in July, with the wider Wellington area at -0.6%, alongside a drop of -0.5% in Auckland, and -0.2% in Hamilton. By contrast, Christchurch edged up by 0.1% and Dunedin by -0.2%.

Outside the main centres, a lot of other provincial markets also saw sluggish results in July. For example, there were falls of at least -0.3% in Whanganui, Hastings, Nelson, and even Queenstown, while Gisborne dropped by -0.9%.

As ever, there’s always variability though, with Invercargill rising by a robust 1.2% in July, while New Plymouth edged up by 0.2%, alongside a small 0.1% rise in Rotorua and a flat result for Whangarei. Invercargill is one of only four areas where median values are at a new record peak; with Gore, Mackenzie and Hurunui.

If you would like a full breakdown of the Home Value index in your region, or city, click HERE

Buyers remain in the ascendency

The renewed flare-up in US-Iran tensions in recent weeks won’t have helped households’ moods in general, but for those buyers who were already active and feel confident about their own financial resilience, it’s still a good time to be out there. Indeed, the stock of available listings on the market is still hovering at multi-year highs and of house prices themselves remain subdued.

First home buyers continue to take full advantage of these conditions, accounting for a new record high of more than 28% of property purchases in the second quarter of the year. Tapping into the low deposit lending allowances at the banks is a key option for them at the moment.

By contrast, mortgaged multiple property owners – including Mum and Dad investors – are showing renewed signs of caution. This isn’t surprising, given weak rents, higher operating costs, and the looming election – along with the possibility of more property taxes.

It’s difficult to see much change in the coming months

Looking ahead, the housing outlook still seems soggy. After all, although mortgage rates haven’t moved much lately, the Reserve Bank has pressed ahead with raising the official cash rate and it may only be a matter of time until fixed mortgage rates edge higher again. The jobs outlook is soft too.

Values will almost certainly start to rise again at some stage. But this may be a story for next year, especially with housing supply now looking more responsive and expectations for future capital growth relatively subdued.

All in all, it remains a challenging environment for the housing market.

At The Mortgage Supply Co, we’re here to guide you every step of the way, whether you buying, selling, or refinancing. Reach out to our team today to discuss your unique situation and how we can support you in navigating the ever-changing property market!