New Zealand Home Prices Plummet to Three-Year Low Amid Economic Uncertainty

New Zealand's housing market continues to struggle, with home prices hitting a three-year low in August. According to property consultancy Cotality, the Home Value Index declined by 0.4% from July, and is now 18% below its January 2022 peak.

This decline adds to the pressure on households already dealing with rising fuel costs and unemployment, which is expected to keep consumer spending subdued. The Reserve Bank has raised interest rates for a second straight meeting in an attempt to head off building inflation pressures.

'The housing market remains in a holding pattern, which seems set to last into next year,' said Kelvin Davidson, chief property economist at Cotality. 'There's no sign of a sharp downturn but equally there's no catalyst for stronger growth in the near term.'