Lower home values and easing interest rates are creating a rare opportunity for first-home buyers to enter the New Zealand housing market, reports property valuation organisation Quotable Value.

QV’s House Price Index shows home values rose 0.10% in the three months to April to a new national average value of $914,504, which is -1.33% lower than the same time last year.

In Tauranga, home values were down -0.23% over the past three months.

The city’s average home value is $1,014,726, which is -1.48% less than the same time last year.

Meanwhile, the Bay of Plenty region saw values rise slightly by 0.28% over the past three months, but they were down -1.30% year on year.

Kawerau values saw the greatest increase, jumping 7.16% over the quarter to April and 1.59% year on year.

Western Bay of Plenty district also saw values rise 2.96% over the past three months; Gisborne was also up 2.78%; and Rotorua was up 0.14%; while Opotiki values dropped -2.21%.

Rest of the country

Across New Zealand’s main urban areas: the Auckland region continues to soften, with home values down 2.89% year on year, and 0.08% over the past 3-months; the Wellington region dropped 4.11% year on year, and 0.50% over the quarter to April; Dunedin was down 0.04% year on year and -0.73% over the past three months; while Christchurch bucked the trend, rising 1.35% year on year and 0.88% in the April quarter; as did Hamilton up 0.36% year on year and 0.12% over the past three months.

QV operations manager James Wilson said while headline values remain soft, early signs suggest a shift in sentiment, with some main urban centres showing a positive monthly trend.

“After five years of significant volatility, the market appears to have stabilised,” he said. “We’re not seeing big swings anymore – home values are holding steady as we head into winter.

“Although interest rates are trending down, demand is tempered by cautious buyer sentiment and a large supply of properties. Still, signs of a turnaround are emerging, especially in the main centres.

“For first-home buyers, particularly in parts of Auckland where standalone homes are now selling in the $700,000s in some areas – something we didn’t see a year ago – now is the time to act.

“Investors remain more active than first-home buyers, taking advantage of lower competition compared to previous peaks. However, many are still taking a ‘wait and see’ approach.”