Report points to policy initiatives meant to cool the market as reason for decrease in growth
House price growth has decreased for the third month running, according to new figures from Quotable Value (QV).
Data from QV’s house price index shows that national house price growth increased by only 4.3% over the three months to the end of July, down from the 6.6% growth seen in the three-month period ending in June.
The average house value in New Zealand now stands at $952,078, according to QV.
Read more: House price value growth eases into winter – QV
David Nagel, general manager at QV, said that the easing in house price growth represents a “cooling” in the housing market due to policy initiatives from the Reserve Bank of New Zealand to suppress runaway growth.
“With looming interest rate rises, we’ll likely see a continuation of this trend,” Nagel said.
All 16 of the major urban areas that QV observes have shown a reduction in their respective three-monthly growth from last month, with Central New Zealand continuing to show the strongest annual rate of value growth.
Meanwhile, the average home value in Auckland sits at $1,352,677 – a 3.5% increase compared to the last three-month period.
“The Auckland QV consultancy team are noticing that reduced supply levels are continuing to keep the market in a strong position, although it is certainly not as frenzied as it was in early 2021,” said Rupert Yortt, a local senior consultant at QV.
