New figures show the number of Auckland homes selling at a loss has doubled in just a year - but that has opened a door for one group of buyers.
Two years ago, Mohammed Ali was locked out of the Auckland housing market, but now he is more hopeful than ever that he will own his own home.
- Buyers' market emerging in Auckland
- Region's property values growing, while Auckland and Wellington dip - QV
- Auckland house buyers increasingly confident prices won't rise
"It would be a real point of pride for us to own our own home, because its part and parcel of the Kiwi dream really," said Ali.
His optimism comes from a 'softening' market, and he says homes that were once not an option are now possible to buy.
"We've seen a lot more houses come up which are a lot more liveable and don't need refurbishment. Houses that are closer to the central suburbs," he said.
New data from Homes.co.nz show the price plunge is continuing.
In the first quarter of this year, 7.2 percent of sales resulted in a capital loss for sellers - that's compared to just 3.1 percent at the same time last year.
Westpac's Dominik Stephens says theres a number of reasons for that.
"We've had tax change which is affecting property investors, and we've had a general loss of interest from foreign buyers in a number of international cities - Sydney, Melbourne, Vancouver, Auckland.
"Actually prices in all those cities are dropping away."
That's bad news if you are looking to sell.
Newshub has spoken to one seller whose home failed to sell at auction on Wednesday. They're gutted, but they it's a buyer's market now, so they might hold off selling their home.
But Auckland's price dip isn't impacting the entire country; Christchurch continues to see a slowdown, with 12 percent of first quarter sales there resulting in a capital loss.
"I'd expect Christchurch to continue lagging for some time, but it should repair itself in time, and Christchurch should eventually catch up," said Stephens.
It's not all doom and gloom though - especially for those selling in Wellington and Dunedin.
"The opposite trend [is what] we're seeing in Wellington and Dunedin, which are growing very strongly at 11 and 13 percent," said Tom Lintern, Homes.co.nz chief data scientist.
As the downward Auckland trend continues, Ali looks to make the most of it.
Newshub.
