Property values in Aotearoa fell -0.2 per cent in December, marking the ninth drop in the past 10 months, according to CoreLogic.

The national median value now stands at $803,624, which is 3.9 per cent lower than a year ago and equivalent to a drop of around $32,200. New Zealand home values are also still 17.6 per cent below the post-COVID peak, although 16.2 per cent higher than the pre-COVID level from March 2020.

Around the main centres, a slightly more consistent picture is emerging, with Hamilton rising by 1.0 per cent in December, Tauranga by 0.4 per cent, Dunedin 0.3 per cent, and Christchurch holding steady. But there is still downward pressure in Auckland (-0.4 per cent) and Wellington (-0.8 per cent).

CoreLogic NZ chief property economist, Kelvin Davidson said that December's fall in values at the national level was an apt summary for 2024.

"Since the mini-peak back in February, property values have drifted lower at a modest pace, initially reflecting the high level of mortgage rates, but more recently the weakness of the labour market,” he said.

“December's mild drop was simply a continuation of that pattern and sums up the market's soggy performance in 2024."

He pointed out that there has been a discernible slowdown in the rate of decline in recent months, potentially signalling that the floor for property values could be within reach. “We're still seeing some sluggish results in Auckland and Wellington, but firmer trends seem to be starting to emerge elsewhere."

"That would certainly be consistent with the influence of lower mortgage rates, particularly the falls for the internal serviceability test rates at the banks. The popularity of either floating loans or short-term fixes at present is helping those lower rates pass through fairly quickly too.”

“However, job insecurity will still be playing a restraining role, as is the elevated levels of listings available on the market."

"These 'conflicting forces' may remain a key theme for the property market in 2025 as well, with the effects of lower mortgage rates dampened to some extent by a still-sluggish economy and credit restrictions in the form of debt to income ratios."