New Zealand home values recorded their steepest quarterly fall in two years over the three months to the end of August, with Wellington posting the sharpest regional decline. The Quotable Value (QV) House Price Index shows national residential values down 1.9% over the quarter — the largest such drop in two years — leaving the average home worth NZ$894,977, down 1.7% since the start of the year and 1.3% year-on-year.
The fall is uneven across the country. Wellington led the decline with a 3.5% quarterly drop, its steepest since March 2023. Auckland fell 2.7%, its own biggest quarterly decline in two years. Gisborne posted the largest fall among main urban areas at 5%, followed by Greymouth (3.7%) and Hastings (2.9%). Christchurch slipped 0.5%, its first negative quarter in 11 months. A handful of smaller South Island centres bucked the trend: Queenstown rose 1% for the quarter, while Timaru and Invercargill each edged up 0.1%.
QV national spokesperson Simon Petersen said the pattern reflects “a slow deterioration rather than a sudden correction,” with buyers firmly in control of negotiations. “They’re taking their sweet time, they’re negotiating hard, and they’re prepared to walk away if the numbers don’t stack up,” he said, adding that this dynamic is what is putting downward pressure on values.
The price falls come against the backdrop of a Reserve Bank of New Zealand (RBNZ) rate decision the previous week: the RBNZ lifted the Official Cash Rate (OCR) to 2.75%, a unanimous and widely expected move, with accompanying commentary pointing to further increases ahead — though OneRoof/Cotality chief economist Kelvin Davidson noted the next hike may not necessarily land at the October 28 review if incoming data comes in softer. Separate Cotality Home Value Index figures for August showed smaller monthly declines nationally (-0.4%), in Auckland (-0.5%) and Wellington (-0.6%), with Christchurch, Hamilton and Dunedin comparatively more resilient.
Petersen linked the OCR move directly to buyer psychology: “Last week’s OCR increase is another factor for buyers to weigh up, alongside the wider economic outlook. Household budgets are still under pressure, the election is getting closer, and buyers know they don’t need to rush.” He said that “unless something changes that equation, we could be in for a busier spring market without much upward pressure on prices.” Davidson separately flagged that investors “will be wary of potential tax policy changes” as the election approaches.
New dwelling supply kept growing even as values softened: Stats NZ recorded 3,579 new dwelling consents in July, up 10% year-on-year and the 12th consecutive monthly rise, taking the annual total to roughly 40,900 — the highest in nearly three years. First-home buyers continued to take an outsized share of activity, accounting for 29% of transactions in July.
References
QV – House Price Index, August 2026 (via Stuff) / OneRoof – OCR up, house prices down: Five key signals shaping the market this week
