There's a cautiously optimistic outlook for the 2025 housing market, after an underwhelming year

CoreLogic's 2024 review finds national property values have declined five percent since February.

Auckland's Herne Bay has retained its position as the country's most expensive suburb, with an average value of 3.36 million dollars.

Chief property economist Kelvin Davidson says with inflation now under control and mortgage rates falling, the market should see property values and sales increase.

He says the lower interest rates benefit both investors and first home buyers.