The latest figures from QV show the value of homes across Aotearoa has dropped, with the capital taking the biggest blow this quarter.
Quotable Value's (QV) latest house price index looks at Aotearoa's housing value from the past three months to June 2022.
The figures reveal the average value of a home in Aotearoa has taken a 3.4 percent tumble in value, falling further than it did in the May quarter - 2.2 percent.
Aotearoa's national average value now sits at $1,011,188.
Breakdown of regions
The index has revealed losses are mounting for an average home in New Zealand's super city, Auckland. The value of an average home across the wider Auckland region has dropped 4.1 percent in this quarter.
Auckland's average home value now sits at $1,441,941, QV valuer Hugh Robson said, with previous property booms in the region the market overshoots itself - now it's correcting.
"Over the past 4-5 weeks, the Auckland residential market has seen a continued decline in buyer activity," he said
"Many auctions are ending without a single bid being registered, with negotiations often taking place later on behind closed doors."
Aotearoa's capital Wellington saw the largest drop in the average home value out of the 16 regions QV recorded.
The capital's average home value dropped 6.6 percent this quarter, the average price sitting at $999,601.
Local QV valuer Blake Ngarimu said properties in the region have continued to hang around on the market, taking an average of 55 days to sell.
"Open homes remain quiet, stock levels remain high, and buyers have plenty of choice - particularly at the lower end of the market.
"Despite this, deals are continuing to be done, albeit at a much slower rate, with vendors having to be realistic in order to achieve a result."
Canterbury and Christchurch
QV reports the Canterbury region has seen its first decline in average home values since the COVID-19 pandemic began.
In the three months to June, values in the region fell 1.2 percent.
"The Canterbury market appears to have reached a turning point, with another month of declining home values," said local QV property consultant Olivia Brownie.
The garden city has shown resilience this quarter and continues to be "more robust" than the likes of Auckland and Wellington.
Dropping 1.7 percent, its average home value now sits at $783,764.
The student city has seen a continual downward slide that reflects the national average. The residential value took a 3.6 percent drop this quarter with the new average sitting at $677,247.
The city of snowy slopes is the only region in QV's index that didn't see a drop in home values. Queenstown's average home value increased by 1.9 percent this quarter to $1,690,835.
"Queenstown was adversely affected by lockdown, even more so than anywhere else. I suspect that because of this, it's probably not as far along in the cycle as most other main centres," said QV property consultant Greg Simpson said
And QV said the mix of rising interest rates and an oversupply of listings is heating the market up.
On top of that, the index highlights that "credit constraints are limiting the number of new buyers entering the market and a combination of newly completed developments" and the "existing property being listed for sale means there are significantly more sellers than buyers, putting downward pressure on prices".
QV general manager David Nagel said, "all eyes will be on" the Reserve Bank's next Official Cash Rate announcement.
"As interest rates are expected to rise further to counter inflationary pressures. While prices are retreating across the country, the increase in borrowing costs means debt servicing and credit availability remain key stumbling blocks for new entrants to the market."