Property values in New Zealand saw a slight decline in May, with the Cotality Home Value Index down 0.1%, the real estate data provider reported on Thursday.

The decline saw the national median home value falling to NZ$818,132, down by about 16% from the January 2022 peak.

Home values in the country's main centers were "patchy" as Hamilton edged up by 0.1%, while Dunedin and Tauranga each slipped 0.1%. Auckland fell by 0.3%, Wellington by 0.4%, and Christchurch dropped 0.8%.

However, values in the country's provincial markets showed more resilience than the main centers. Queenstown rose by 1.2%, Invercargill by 0.5%, with gains also in Rotorua, New Plymouth, and Hastings, while most other regions were flat or slightly down.

"May's figures are a reminder that any emerging housing upturn could well remain slow and variable for the time being, both from month to month and across regions," said Cotality NZ's chief property economist Kelvin Davidson.

Housing remains unaffordable amid a weak economy and soft labour market, with filled jobs falling in April, dampening buyer willingness to pay higher prices, Davidson said.

While May's national price dip could be reversed next month, hopes for a strong 2025 rebound are fading, Davidson added.

The year ahead is shaping up to be of mixed forces in housing, with lower interest rates supporting activity but high listings keeping prices in check.