NZ approaching longest-ever housing 'flat patch'
The last time prices were flat for longer was from 1997 through until mid 2001, a period of 45 months.
New Zealand may be on track for its longest ever housing flat period, according to economists. Property values dipped 0.4 percent in August, bringing the national median home price to $797,944—a 1 percent decrease from the previous year. Cotality chief property economist Kelvin Davidson noted that economic uncertainty, higher mortgage rates, and a surplus of homes for sale have led to a slowdown in sales activity and stagnant prices.
This trend has lasted about 36 months, potentially making it the longest flat period on record if it continues through next autumn. The last time prices were flat for this long was between 1997 and mid-2001. Despite the current flat patch, the Reserve Bank predicts house prices could fall further over the next year. While affordability has improved, consistent growth in house prices seems unlikely until labor market conditions improve, which may not happen until 2027.
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