According to the results of CoreLogic NZ’s latest hedonic Home Value Index (HVI), for January, property values in New Zealand decreased by 0.1% in January marking the fifth month in a row with "limited movement".
After a cumulative decline of 4.1% over the six months from March to August last year, there had only been a further combined fall of 0.4% since then — a potential sign that a rebound in prices could be taking shape.
The national median property value now stood at $803,819.
Dunedin saw growth of 0.1% in its median property value in January to $611,677 — 0.9% higher than a year ago and 11.1% higher than before the Covid-19 pandemic.
The previous HVI said this value had risen 0.3% in December.
CoreLogic NZ chief property economist Kelvin Davidson said Dunedin had not been immune to the downturn, and had copped "its share of pain" like everywhere else, but had been relatively resilient and had not fallen as much as the likes of Auckland or Wellington.
"Everyone felt the pain from higher interest rates, but things weren't quite as stretched in Dunedin to start with.
"The downturn phase has been a bit more mild, and it could be poised to just grow a little bit faster than average in the next little while because it didn't get quite as stretched."
While house prices were yet to bounce back in Dunedin, and could still be characterised as a "pretty flat market", it was a relatively better result than the likes of Auckland and Wellington, where prices were still falling.
It was a good example of a market "that's poised for a rise, but maybe isn't quite there yet", Mr Davidson said.
"As those lagged impacts of lower mortgage rates come through, it's probably just as well-placed as anybody to see some kind of growth, but that growth may well be modest."
Meanwhile, Invercargill’s median property value dropped 0.2% to $468,161 in the past month, while Queenstown rose 0.1% to $1,631,244.
Around the rest of the country, Wellington’s median property value fell 0.6% last month and Auckland and Christchurch’s both dropped by 0.1%.
At a national level, Mr Davidson said the recent stability in property values could be a sign of future growth potential.
Since the decline felt over the middle of last year had petered out, national property values had been in a "holding pattern" — not moving clearly in either direction, he said.
