July was undoubtedly a shocker for New Zealand’s housing market, with a broad spectrum of data showing tumbling prices, swelling stock, and/or plummeting sales. First, CoreLogic reported the steepest decline in house prices since the Global Financial Crisis, with values down 2.5% over the three months to July and all six major regions falling. Second, QV’s House Price Index reported that average dwelling values had plunged 4.9% over the three months to July, with all but one major district falling in value. The Reserve Bank of New Zealand (RBNZ) last week lifted its interest rate guidance in response to stubbornly high inflation. The RBNZ also projected a bigger 15% peak-to-trough decline in house prices:If the RBNZ follows through with its guidance, it will obviously place further strong downward pressure on New Zealand house prices, which are already in freefall.

Source: New Zealand Herald August 22, 2022 20:07 UTC