photograph: RNZ / Nathan McKinnon
Homeowners in some of the nation’s wealthiest suburbs have seen their homes lose an estimated $300,000 or more in the past year.
Real estate research firm CoreLogic’s quarterly market mapping tool shows that more than a third of the 923 suburbs monitored nationwide posted double-digit declines last year.
Ten of the suburbs surveyed recorded a loss of $300,000 or more, mostly in the “upscale” suburbs, including Auckland’s St. Mary’s Bay, Westmere, Orakei, Wellington’s Seton and Calaca Bay. may be classified.
Values fell by more than 20% in 31 suburbs, only one of which was outside the wider Wellington region.
Chief real estate economist Kelvin Davidson says homeowners whose median home prices have fallen sharply are likely to be affected only if they’re looking to sell now after buying at the peak of the market. Stated.
“It’s also worth noting that these suburban homes are generally more expensive to begin with.
“Additionally, it is not just the upper tier of the market that has seen declines.
“Overall, this confirms that this recession is fairly severe and widespread in many parts of the country, hurting existing property owners, but not as financially approved. It’s a sign of hope for aspiring buyers.”
Auckland property prices fell across all 197 suburbs analyzed over the past 12 months. The smallest drop was Waiuku at 0.3% or $2800, while Waiatalua, Otara, Wattle Downs and Clover Park saw drops of more than 16%.
Wellington lost nearly 28% in Plymerton and 25% in Southgate, despite the biggest price drop of $389,800.
Christchurch, however, fared better, down 9% in Ilam, Splaydon and Sockburn, and up 8.4% in Aranui to the east.
Values have fallen across Dunedin over the past year, from 3% in Karitane to 16% in St Leonards, Maryhill, Ravensbourne and Forbury.
Market forecast
Davidson said the real estate market still faces significant challenges, including high mortgage rates for new borrowers and expensive refinancing for existing borrowers.
“But many sectors have already fallen significantly, so we may be poised to hit the bottom first as underlying factors calm down,” he said.
“Overall, the property market could remain subdued through 2024, even if sales activity and property prices bottom out this year, as expected.
“But these ‘early depreciators,’ the suburbs whose value fell first, may also rise soon thereafter.”
