The latest QV House Price Index shows average home values across New Zealand dipped by 0.5% over the three months to the end of July, with the national average now $909,671.

Tauranga bucked the trend, however.

Home values in the city rose 1.7% over the July quarter to an average of $1,031,583.

This marks a 1.2% increase compared to the same time last year and home values are now 11.6% lower than the previous peak.

Across the wider Bay of Plenty region, the average value increased by 0.7% this quarter to $890,517, which is 0.8% higher year on year.

QV North Island Revaluation Manager Sophie Treder said steady demand from first-home buyers and owner-occupiers had supported values in most parts of the region.

“While developers have been less active in some areas such as Rotorua, overall market sentiment remains stable,” she said.

Rotorua and Gisborne recorded quarterly declines of 0.9% and 2.4% respectively.

Rotorua is now 1.5% lower year on year and 10.9% below the late 2021/early 2022 peak: while Gisborne is 0.7% up annually and 9.6% below peak.

Nationally

Values remain almost unchanged compared to the same time last year and the nationwide average value is 13.1% below the market peak in January 2022 of $1,047,132.

While the rate of decline has slowed in many areas, the overall market remains subdued.

Values were down in most of the main centres this quarter, including Auckland (-1.2%), Wellington (-2.3%) and Dunedin (-1.5%), though some cities such as Tauranga (1.7%), Queenstown (2.4%) and Invercargill (1.2%) bucked the trend with value growth over the past three months. Whangarei and Christchurch were largely flat.

QV national spokesperson Andrea Rush said the housing market is still adjusting to a softer economic environment, with many buyers carefully weighing affordability, employment security and mortgage servicing costs before committing to a purchase.

“There’s more activity occurring at the lower to mid-value end of the market, where first-home buyers and owner-occupiers remain the most engaged,” she said.

“These buyers are being supported by relatively stable interest rates, improving access to finance, and a wide range of listings, particularly in larger urban centres.”

Rush said market conditions continue to vary by location and property type, with some regional centres experiencing renewed value growth off the back of earlier declines and ongoing demand for affordable housing.

“While national value levels have broadly stabilised, the recovery is uneven and fragile.

“Vendors in many areas are having to meet the market to achieve a sale, while some buyers remain hesitant due to broader economic uncertainty.”

With the traditional spring uplift in listings just around the corner, Rush said the next few months will be pivotal in determining whether the market begins to tilt more decisively toward recovery.