Billions in wealth lost during one of the severest housing corrections

He says most people feel the property market has had a rough couple of years but few seem to grasp how severe the correction has been in real terms.

House prices in New Zealand reached their peak in late 2021 – the culmination of a frenzied run fuelled by near-zero interest rates, Covid-era stimulus, and a collective mania. Properties sold tens of thousands of dollars above asking price within hours.

Since then, the market has sobered up. In Auckland, values peaked in November 2021 and have since fallen about 21% and in Wellington have dropped about 25% - the worst performing major city in the country.

Nationally, the median sits roughly 17–18% below the early 2022 peak, hovering around $795,000 to $808,000 at early this year. “This is a massive fall by any measure, but it still understates the damage,” Bolton says.