Since mid-2022, the global housing market has been in a slump, and in the first half of 2022, central banks all over the world began raising rates, dampening the record home price growth recorded since 2020.
New Zealand home prices peaked in mid-2022 and had dropped by 13% by June 2023, still counting. Recording 9% declines at the same time were Canada and Australia. While home prices in the United States and the United Kingdom never fell more than 4% in either country.
According to CoreLogic, New Zealand saw the biggest such boom, with prices rising by 46% from January 2020 to March 2022. The U.S. and Canada closely followed with 41% and 37% increases, respectively, from January 2020 to June and April 2022. Home prices in Australia rose by 28%, peaking in April 2022, while U.K. prices were the last to reverse course, reaching a 26% gain in November 2022.
The post-2022 price trends across countries show somewhat different patterns, however. At first, all five nations experienced some drop. In New Zealand, the slide is still ongoing, with a decline of 13% as of July 2023. The other nations have all reversed course: Australia prices fell by 9% but have increased by 4% since February; the U.K. declined by 3% but is now up by 2% and the U.S. decreased by 3% but has posted a 5% uptick since January. Currently, U.S. home prices are above their 2020 peak.