House prices in New Zealand declined for the fifth consecutive month in August, reaching their lowest level in two years, as weak economic conditions and increasing joblessness discourage buyer activity. According to Cotality, a property research firm based in Wellington, values dropped 0.2% compared to July, which saw a downwardly revised 0.4% decrease. On an annual basis, the index fell 0.1%, marking the weakest point since August 2023. Persistent inflation, elevated borrowing costs, and stagnant wage growth continue to pressure household finances, contributing to a cooling housing market. Analysts suggest that without a significant shift in employment or monetary policy, the trend may persist into the next year. n n— news from Bloomberg
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New Zealand House Prices Drop to Two-Year Low in Weak Economy
New Zealand house prices fell for a fifth straight month to a two-year low in August as sluggish economic growth and rising unemployment keep buyers on the sidelines. n nPrices fell 0.2% from July, when they dropped a revised 0.4%, property consultancy Cotality said Thursday in Wellington citing its home value index. From a year earlier, the gauge fell 0.1%, taking it to the lowest since August 2023.