The latest QV House Price Index figures show Dunedin’s average home value decreased by 2.2% in April to $619,622, compared with a 0.4% average reduction in March.
Annually, home values are now 11.3% lower than they were at the end of April last year.
Local QV registered valuer Rebecca Johnston said supply continued to exceed demand.
"With so much choice and so few active buyers, properties requiring any maintenance, repairs and upgrades are being viewed less favourably, often requiring extended marketing periods and vendors having to lower their expectations," Ms Johnston said.
"Investors are continuing to take a back seat for the most part, feeling the pinch of higher interest rates.
Some have consolidated their portfolios, off-loading debt to ease some pressure by reducitheng sale prices to achieve quicker sales.
"Off-plan townhouses continue to be their preferred investment choice, with no bright-line test applicable to new builds, as well as mortgage interest deductibility compared to existing builds," she said.
New Zealand’s average home value is zeroing in on the $900,000 mark following yet another month of widespread declines.
The QV House Price Index shows values have reduced by an average of 4.5% throughout the first four months of 2023, including an average reduction of 0.6% in the month of April — a marked improvement on the 1.4% average decline recorded back in March.
The national average home value is now $902,501, which is 13.3% less than the same time last year, but 22% higher than before the Covid-19 pandemic first began here in late February, 2020.
The average rate of home value decline has slowed in 10 of the 16 largest urban areas that QV monitors — including in Auckland, where the rolling three-month rate of reduction has slowed from 5.2% in March, to 4.4% in April.
However, it is still the second-largest average home value decline this quarter, after Whangarei (4.6%).
Wellington’s average rate of home value decline has also slowed to 3.7% this quarter, down from a 4.8% quarterly decline back in March.
