News & Research

Overcoming the Challenges of Volatile Housing Markets

Housing markets in New Zealand have been experiencing uncertainty of late.

High volatility in the market can present challenges when it comes to providing accurate valuations - much can change in a short period.

Access to the latest property data and insights can help ensure valuations reflect current conditions, at any point in time.

Recent patterns in the NZ housing market

Growth was particularly strong during the first two years of the pandemic, when the New Zealand House Price Index grew by 41%. The market peaked in October/November 2021.

As a result of inflationary pressures and the RBNZ raising the cash rate in response, the market has fallen dramatically. House values have dropped at the fastest rate since the GFC in 2008.

Recent CoreLogic housing data reveals:

  • House values fell nationwide by 2.5% during the second quarter of 2022, and by a further 0.9% in July and 1.8% in August.
  • Wellington City experienced falls of 4.5% in July – the largest falls in a decade.
  • In Auckland there was a 4% reduction in quarterly values in the most populous areas of the city.
  • Christchurch, a usually-resilient city, experienced falls of 1.6% in July and a further 1.3% in August.
  • Dunedin values fell by 1.3% in July, and 5.8% overall for the year.
  • Napier experienced the largest quarterly falls at 6.1%.
  • The gap in median values between three and four bedroom properties has reduced.

What is the outlook for Q4?

Further increases to the cash rate are anticipated in the coming months. However, cash rate changes are now having less impact on mortgage interest rates than before. There are signs that the market could be getting close to the bottom.

So while house values are still going down, it looks likely that the speed of the fall will start easing off somewhat.

That said, the market still appears uncertain at this point.

Keeping pace in such volatile conditions

Having ready access to the latest data can help valuers overcome the challenges of fast market moves when conditions change from one month to the next.

The following tools can help valuation professionals keep pace with their local markets more easily, and also add value for their clients by providing them with greater insights into the market.

  • House Price Index (HPI) Report

HPI is a robust measure of property value changes in the housing market.

The HPI report is delivered monthly and provides insights into property value movement throughout New Zealand, helping valuers stay on top of shifting market conditions.

Download the HPI here.

  • Mapping the Market Tool

An interactive mapping tool that allows valuers to drill down to suburb median values. Valuers can also compare values with the previous quarter in terms of dollar values and percentage changes. Explore the rich visual representation of markets across a wider geographic region.

Learn more about Mapping the Market.

  • Pain & Gain Report

Quarterly research paper providing a detailed analysis of property resales and their gains or losses in both the North Island and South Island markets, to help valuers gain a deeper understanding of housing growth trends.

Download the report.

We recognise how crucial it is for valuers to provide fair and accurate valuations that reflect the market. Access to objective and up-to-date property data and insights facilitates this, helping valuers stay on top of current conditions and keep their clients satisfied.

Learn more about CoreLogic’s range of trusted tools and platforms designed specifically for property valuers.


CoreLogic New Zealand

CoreLogic New Zealand

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