House prices dip again as buyer demand grows

Property prices dropped for the second month in a row, with the national average asking price down 1.2% to $845,250, according to Trade Me’s latest Property Pulse Report. 

“We saw prices fall across most of the motu in May, with only four exceptions of the 15 Trade Me Property monitors,” said Trade Me Property Customer Director Gavin Lloyd (pictured). 

“Southland (+1.2%), Taranaki (+1.5%), the West Coast (+1.4%) and Manawatū/Whanganui (+0.1%) were the only regions showing some signs of growth.” 

This follows Trade Me’s recent reporting on internal migration trends, which noted growing interest in the South Island as buyers look for more affordable housing and lifestyle benefits. 

Metro regions at eight-month price lows 

Auckland, Wellington, and Canterbury all recorded their lowest average asking prices since September 2024. 

• Auckland prices dropped 1.5% on April and 2.5% year-on-year, settling at $1,030,850. 
• Wellington fell to $805,100, down 0.6% month-on-month and 2.9% from May 2024. 
• Canterbury averaged $705,650, down 0.6% both monthly and annually. 

Lloyd noted buyer caution may be contributing to longer decision-making periods. 

“Buyers tend to take a little more time in the winter months, and the current market is already showing signs of this slowdown with median days onsite sitting at 70 in May, up from 62 in April,” he said. 

Supply tightens, but demand rises 

The number of listings fell 1.3% from April, though listings remained 5% higher than May 2024. Only Auckland and Taranaki recorded modest month-on-month growth, up 1%. 

In contrast, demand rose 2.4% on April and 4% year-on-year, with Auckland, Canterbury, Southland and Taranaki each posting 5-6% monthly demand increases. 

“A plentiful supply of properties, coupled with more affordable loan repayments is giving buyers a sense of renewed confidence and motivation,” Lloyd said.