PHOTO: The report suggests that first-home buyers will play a significant role in driving this growth, particularly in metro areas with average property values below $1 million. Image by rawpixel.com
New data from OneRoof reveals that property values are expected to rise in 107 suburbs nationwide. These suburbs, located in Auckland, Christchurch, Dunedin, and Wellington, are positioned to lead the housing market rebound.
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Notably, Christchurch and Dunedin have shown the strongest growth in average property prices over the past three months. Examples of suburbs experiencing growth include Bromley in Christchurch, with a 3% increase to $515,000, Aranui in Christchurch, up 2.6% to $466,000, and Waikouaiti in Dunedin, up 2.1% to $527,000.
The report suggests that first-home buyers will play a significant role in driving this growth, particularly in metro areas with average property values below $1 million. Additionally, the decline in property value has slowed in 69 suburbs, with Auckland and Wellington seeing notable turnarounds.
While some regions, such as Hamilton, Queenstown-Lakes, and Tauranga, continue to face price pressures without immediate signs of revival, other areas outside major metro regions, including the South Island, Taranaki, and Northland, are expected to experience a reprieve.
The average house price changes. (Source: Supplied)
Overall, while the market has seen significant changes in property values, the report indicates minimal changes at a national level.
The average national property value has decreased by 2.1% in the last three months and 11.1% year-on-year, averaging around $944,000.
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New listing volumes have also dropped, raising concerns for buyers who were waiting for further price drops. However, despite the challenges, the report suggests that the market will benefit from the certainty provided by the cash rate peaking at 5.5% and factors such as rising net migration and pressure on rents.
Nonetheless, homeowners may focus on paying down debt rather than making additional purchases, given the projected increase in mortgage rates.
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