According to CoreLogic NZ’s latest hedonic Home Value Index (HVI), property values in New Zealand fell 0.2% in December — the ninth drop in the past 10 months.
The national median property value now stood at $803,624, which was 3.9% lower than a year ago and equal to a drop of about $32,200.
New Zealand home values were still 17.6% below the post-pandemic peak, but 16.2% higher than the pre-pandemic level from March 2020.
The median property value in Dunedin rose 0.3% in December to $607,327 — 1% higher than a year ago and 11.1% higher than before the Covid-19 pandemic.
Auckland and Wellington fell 0.4% and 0.8% respectively last month, while Hamilton rose 1% and Tauranga by 0.4%.
Christchurch stayed the same.
CoreLogic NZ chief property economist Kelvin Davidson said the mild drop nationally in December summed up a "soggy performance" from the market in 2024.
Property values had drifted lower at a modest pace since a "mini-peak" in February, initially reflecting the high level of mortgage rates, but more recently the weakness of the labour market.
NZ Property Solutions director Lyndon Fairbairn said he was not surprised the city’s property values had stayed somewhat steady.
Their agents had a busy December and were seeing a lot of buyers in the market.
It had been a steady year and he expected the property market should start seeing some good signs of growth later in the year and into 2026.
"I think it’s going to be positive signs for Dunedin and the rest of New Zealand."
While it may not shoot up straight away, Mr Fairbairn expected property values could increase between 5% and 8% this year and more than 8% next year.
Property Brokers Dunedin sales manager Dan Ferguson said the figures did not come as a surprise and had noticed a lot more buyer interest in the past few months.
While a 0.3% rise in December was nothing to get too excited about, the market may end up "sitting quite happy" should interest rates come down in the next six months to a year.
"There’ll be a lot of stuff to sell and there’ll be a lot of buyers out there.
"That’s a nice middle ground to be in — it’s a good, confident market.
"So I think it’s going to continue to improve next year."
The property market would likely increase in terms of price and buyer activity, in 2025, Mr Ferguson said.
Mr Davidson said many of the key drivers for the property market might continue to work in opposing directions in 2025 — such as the supportive influence of lower mortgage rates, but the restraint from abundant listings and labour market uncertainty.
The year could prove to be one of "conflicting forces" for the New Zealand’s housing market, and CoreLogic NZ expected values could increase by about 5% in 2025 across the country as a whole, Mr Davidson said.
