According to the latest data released by CoreLogic, the overall real estate market in New Zealand is currently showing a stable trend. In April, the national average house price dropped by 0.1%, following a slight increase in previous months. The trend is more pronounced in Auckland, where house prices fell by 0.6%. Currently, the national average house price is slightly over 900,000 New Zealand dollars.
One of the reasons for the slowdown in the housing market demand is the increase in mortgage rates. The average fixed mortgage rate is currently close to 7%. First-time homebuyers are taking advantage of this stable pricing opportunity, with a 20% increase in their share of sales, according to Reserve Bank data.
However, the number of new homes being constructed has seen a significant decrease, with building permits decreasing by 25%.