The housing market in 2022 can be summarised by five categories: lower prices, lower sales with longer sale times, expectations of the market bottoming out, mortgage costs increasing and fewer new builds.
House prices have fallen further from January to November than they have in 15 years, according to the latest QV House Price Index.
Released this week, the report shows that house prices across the Wellington region dropped by 5.2 per cent in the last quarter.
In 2021, the average home value increased by 25.5 per cent to $1,086,421. However, it has now dropped to $883,897, with further declines looking to come.
Nationwide, prices are slumping, with sales reaching the third lowest figure in three decades, and mortgage rates continuing to climb.
Further, it’s predicted the market won’t bottom out until late 2023.
However, Harcourts Masterton general manager Prue Hamill said she was optimistic the market would stabilise sooner.
“From November to November, so year-on-year, there were more listings, but owners’ expectations may need to change.
“People want to buy, but they are just more cautious.”
Hamill said that as the OCR was raised and mortgage rates increased, people would start feeling the pinch.
“We haven’t at this stage seen any mortgagee sales which is pleasing.
“Those on floating rates were at some two to three per cent are now sitting on just about seven per cent – I think next year people will feel it.”
Trade Me’s latest property price index, released on Tuesday, showed that while nationwide supply reached an all-time high last month, demand had seen a downturn.
It also said that New Zealand’s property price fall of 4 per cent was the largest year-on-year drop in five years.
Nationwide, the largest property price falls were in Hutt City and Upper Hutt, dropping -22.6 per cent and -22.2 per cent respectively.
Hamill said Wellington’s market would have an effect on Wairarapa as people relocated into the region.
