Property market’s ‘longest and deepest downturn’ in 30 or 40 years

New Zealand's housing market is currently navigating what property data firm Cotality describes as the "longest and deepest downturn" in the last 30 to 40 years. The firm's latest data reveals a continued slump, with property values falling by 0.3% in July, mirroring a similar decrease observed in June.

This prolonged period of decline signifies a substantial shift in the market dynamics. For an extended duration, the market has favored sellers, driving up prices. However, the current trend indicates a reversal, with buyers now holding a stronger position.

The data suggests that the downturn is not a short-term fluctuation but a sustained period of contraction, impacting property values across the country. This presents a challenging environment for existing homeowners looking to sell and potentially an opportunity for prospective buyers who have been waiting for more favorable conditions.