‘Significant headwinds to come’; further house price drops ‘would not come as a surprise’

Property values could keep falling over the coming months as economic pressures bite, analysts say.

Fresh figures from property analysts Cotality show the national median value in May was 0.1% lower than three months ago, down 0.6% from a year ago, and still 17% below the peak seen in early 2022.

The national median price for a home is now $808,187.

Cotality chief property economist Kelvin Davidson says "renewed, modest declines in property values in the coming months would not be a surprise", though they would likely only amount to "one or two percentage points."

ANZ senior economist Matthew Galt says the bank is now “forecasting a 2% price drop this year largely driven by the fuel crisis, low consumer confidence, and rising interest rates.”