New figures show a slight uptick in New Zealand's average house prices, the first quarter of positive growth since late 2021.
The latest QV House Price Index was released this morning, showing the average national house price rising by 0.5% to $893,639.
A statement announcing the figures was titled: "Has the real estate recovery begun?"
However, many of the major centres still saw price declines.
Auckland (-0.5%) and Wellington (-0.6%) still saw negative quarterly changes, while prices in Hastings (-2.5%) fell the most of the main urban areas. Christchurch (0.1%) bucked the trend, and Invercargill (1.5%) saw the most growth of the main urban areas.
"If we step back and take a good look at the housing market at a high level, things are beginning to look a little healthier now," QV's James Wilson said. "For the first time in a while we are seeing value increases in some areas of Aotearoa – especially in places where there is strong demand for entry level housing."
Wilson said the growth was mostly driven by first-home buyers outside of the centres.
"Generally speaking, it's a case of the more affordable end propping up the market overall, with areas coming off low value bases continuing to be among the strongest performers," he said.
"The obvious exceptions among the main urban areas we monitor are Tauranga and Queenstown, but in both of these places values at the lower end of the market are growing while values at the upper end are still soft."
He said sales volumes have increased month on month – but, new listing numbers have generally continued to soften.
"Real estate agencies are beginning to report growing interest for a reduced number of new properties coming onto the market, with buyers having to compete for the best ones. This is pushing up values once again," he said.
"It seems market confidence is increasing, but the upcoming election has also encouraged many buyers and sellers to adopt more of a 'wait and see' mindset.
"It's also important to remember that strong economic headwinds are still blowing, with many households still re-fixing their mortgages at significantly higher interest rates."
Wilson didn't expect the market to bounce back at a "significant" rate, with gentle growth projected in some areas but not others.
"We'll have a clearer view of what's next for the housing market after 14 October," he said.
"By that time, we'll also have some indication of whether or not we'll see the usual spring surge in listings that we typically experience around this time of year."
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