By 1News

The average house value has fallen 2.2% in the three months to April, as rising interest rates bite.

The latest QV house price figures over the past three-month period to the end of April, showed a 2.2% fall in the value of the average home nationally, with the average price of a home in New Zealand sitting at $1,040,927.

In Auckland, the value fell 3.1% over the three-month period, with annual growth of 14.2%, down from the 18.6% reported in March.

The average value in NZ's largest city now sits at $1,492.807

In a statement, QV General Manager David Nagel said he’s not surprised by the results.

“The largest declines are occurring in locations that experience the strongest growth over the past couple of years.”

These regions include Palmerston North and Wellington, which have seen a 5.4% and 3.6% reduction respectively. Dunedin and Hastings follow, both down by 3.4%.

“These markets were the first to become overheated and that makes them more susceptible to a value correction as rising interest rates, tightening credit and affordability concerns start to kick in,” Nagel said.

On the other hand, five of the 16 regions that QV covers have seen an increase in their house price values. This includes Marlborough (3.4%) and Queenstown Lakes (3.2%).

Nagel says that the downward trend is set to continue, as vendors who are willing to sell their properties are forced to meet the market.

“This is a trend that’s likely to spread across all of New Zealand as listings continue to outstrip demand in the majority of New Zealand towns.”

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