On average, a home in Tauranga is now worth 2.9% less than at the start of 2024.

This is according to the latest statistics from Quotable Value.

In a statement released this week, QV said Tauranga has experienced a slight rebound after five months of slow decline.

The city’s average home value experienced a modest monthly increase of 0.2% to $1,005,306 in November.

However, the average home value is still 1% lower for the quarter – a slight improvement on the 1.6% quarterly decline recorded in October.

Nationally, the housing market is on track for its flattest calendar year in more than a decade, despite a modicum of growth this quarter.

The latest QV House Price Index shows home values grew nationally by an average of 0.3% in the November quarter – the first quarterly increase since April.

The average home is now worth $908,173, which is 0.7% less than at the same time last year and 14.6% below the market’s peak just over three years ago.

Among New Zealand’s main urban centres, Auckland (0.5%), Hamilton (1.2%), Napier (0.9%), Christchurch (0.3%) and Dunedin (0.7%) all recorded modest quarterly home value increases for the first time in months.

The average rate of reduction also slowed this quarter in Tauranga (-1%) and Wellington (-0.9%).

“Time will tell whether or not we’re finally witnessing the modest beginnings of the housing market’s long-awaited rebound or whether this is just another small bump in what has been a remarkably bumpy road in recent years,” said QV operations manager James Wilson.

“Interest rate reductions have certainly paved the way for a general uplift in activity and market sentiment across much of the country. We’re now seeing significantly more Kiwis at open homes and in auction rooms, which has largely stemmed what was, for the most part, a slow reduction in property values throughout winter. But with such a large supply of homes for sale, demand isn’t yet converting into significant price pressure.

“We did see an overall increase in property values around the same time last year too, which petered out as interest rates, the increased cost of living, rising unemployment and slowing migration took hold once more. These are still pretty major factors today and will also continue to play a pivotal role in hampering any significant home value growth as we move into 2025, even as mortgage rate relief finally sets in.

"Despite this modicum of growth in the November quarter, the average home in Aotearoa is now worth just 0.3% more than at the start of this calendar year. “With December’s figures still to be accounted for, the housing market looks to be on track for its flattest calendar year in more than a decade,”.

“Looking ahead, there’s still very little to suggest that house prices will suddenly take off any time soon, with supply far outweighing demand. There are still buyers waiting in the wings for economic conditions to improve and for interest rates to drop further. It looks like they may get their wish in 2025 but it could still be a while yet, and any growth in the meantime is expected to be moderate at best.”