New Zealand's national residential property values rose by an average of 0.5% in the three months to February based on the QV House Price Index released Thursday.

This means the average home is now worth NZ$912,904, which is down 1.4% year on year and more than 14% below the market's peak in late 2021, according to QV, a valuation and property services company.

"After some pretty significant volatility throughout the past half-decade, the housing market now appears to have well and truly stabilized," said QV operations manager James Wilson. He noted that despite seeing lower interest rates, a slowdown in population growth is partially offsetting an increase in demand.

Home values in Auckland rose 0.6%, while those in Tauranga climbed 1.6%.

Rotorua District and Napier City home values each went up 2.1%.

In contrast, the average home values in Whangarei in the Northland fell 0.5%. Home values in Hastings District were also down 3.4%.