House prices tipped to drop in most major cities this year

PHOTO: NZ house prices. FILE

House price are tipped to drop in most major cities this year, experts surveyed by the Reserve Bank of New Zealand (RBNZ) have predicted.

The 12 experts surveyed in this month’s Finder RBNZ Official Cash Rate Survey said Auckland, Hamilton, Tauranga, Wellington, Christchurch and Dunedin will see no rise in house prices, with most places seeing a reduction.

Hamilton and Wellington are forecast to have the largest drop, according to the experts.

Christchurch, meanwhile, has a neutral outlook.

Experts think Auckland will see a 2% drop in prices, with the median property price in a year being $1,225,000, a change of $25,000.

Hamilton will see a 3% price drop, with the median price becoming $824,500, a change of $25,500.

Tauranga will see a 2% drop, with the median price becoming $1,078,000, a change of $22,000.

Wellington will see a 3% drop, with the median price becoming $1,051,911, a change of $32,533.

The median price in Christchurch is expected to remain the same at $731,000.

Dunedin will see a 2% drop, with the median price becoming $671,300, a change of $13,700.

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KiwiBank’s Jarrod Kerr, one of the experts surveyed, said the housing market is now in retreat.

“Prices are beginning to decline in most regions. Because rising interest rates and regulatory changes – including loan-to value ratio (LVR) restrictions and the Credit Contracts and Consumer Finance Act (CCCFA) – are weighing on confidence.”