Property values have fallen again, but what does that mean for buyers and homeowners?

If you've been keeping an eye on the property market, you'll know it's been a bit of a mixed bag lately.

The latest figures from Cotality show that New Zealand property values have fallen for the sixth month in a row, with the national median value dropping 0.3% in September. Values are now 1.3% lower than they were this time last year.

At the moment, buyers have a bit more room to move. There are plenty of properties on the market, which means buyers have more choice and aren't necessarily feeling the pressure to make a quick decision.

That doesn't mean every seller is prepared to take a big discount, but there is certainly more opportunity to negotiate than we've seen in previous years.

It's easy to focus on how much property values have dropped since the highs of 2021 and 2022, but it's worth remembering that not everyone bought at the peak. In fact, only around 5% of New Zealand's housing stock changed hands during that period.

For people who bought their homes several years earlier, things may look quite different. Over the past decade, national property values have still increased by an average of 3.2% each year. So, while the market has had its ups and downs, many longer-term homeowners will still have seen growth in the value of their property.

So, when will things start picking up again? That's the million-dollar question!

Improved affordability is helping first-home buyers get into the market, and having more properties to choose from certainly makes the process a little easier. However, higher mortgage rates, economic uncertainty and concerns around job security are still making people cautious.

We're unlikely to see a big jump in property values until people feel more confident about their financial situation.

Could now be a good time to buy? It could be. With buyers having more choice and potentially more negotiating power, it's certainly worth exploring what's available.

But buying a house isn't just about finding the right property. It's also about making sure the numbers stack up and that the mortgage repayments are manageable for you.

If you're thinking about buying, or just want to know what you might be able to borrow in the current market, I'm always happy to have a chat. Sometimes it's good to know where you stand before you start looking.