House price falls in hundreds of thousands

CoreLogic says any change by banks to mortgage interest rates is likely to be limited as tighter monetary policy has already been priced in by the banks.

CoreLogic chief property economist Kelvin Davidson says the first hurdle has now likely been cleared in terms of the housing market downturn getting closer to ending.

However, CoreLogic’s data show the average Auckland house values were down by almost $200,000 over the past year and in Wellington values were down by almost $300,000. Across New Zealand average values dipped by $100,000. 

CoreLogic’s House Price Index shows the average value of homes across the country peaked at $1,043, 261 in March last year, but by the end of March this year it had dropped to $933,770, a decline of $109,491 in value.