House price growth slows to average 3.3%

PHOTO: A house is pictured for sale in Christchurch, New Zealand. Source: Associated Press

The rate of house price growth has slowed to levels seen prior to the pandemic, but price falls remain unlikely.

Quotable Value‘s rolling three-month average house price index to the end of August rose 3.3 per cent, and slower than July’s growth rate of 4.3 per cent, and similar to similar to the January to March quarter of 2020.

The annual growth rate was slightly higher at 26.6 per cent, with the national average value now at $963,046, while the average house price in Auckland was up nearly a quarter on a year ago to $1.37 million.

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QV general manager David Nagel said with prices still going up, the growth rate had significantly reduced compared to the peaks seen earlier this year.

“This is the fourth month running that we’ve seen a reduction in the nation’s rolling three-month average growth rate, so the market has clearly been cooling.”

He said growth rates were now at the levels we saw last year, prior to the country coming out of the first lockdown.

House prices jumped when restrictions eased last year, fuelled by ultra-low interest rates, relaxed lending restrictions and a dearth of supply.