National rebound sharpens focus on borrowing capacity
New Zealand’s housing market has entered 2026 with renewed price momentum, with the national average asking price rising to $883,800 in February, up 3.1% on January and 1.7% year-on-year, the highest level since early 2024, according to the latest Trade Me Property Pulse Report.
Trade Me Property customer director Gavin Lloyd (pictured) says the upturn is broad-based.
“It’s not just one or two regions of the 15 we monitor, but the majority that are seeing increases both when compared to the same period last year, and month-on-month. The South Island in particular is looking solid across the board,” Lloyd said.
Recent trends suggest this momentum has been building for some time. Latest industry figures showed New Zealand’s home-building pipeline strengthening, with 36,944 new dwellings consented in the year to January, signalling a construction recovery. Vendors were also retreating from 2025’s deep discounting, with Q4 price cuts limited to about 3% of listings.
Key regions lead steady price reset
Within that national rebound, Auckland continues to set the pace, with the average asking price reaching $1,096,000 in February, 5.4% above January and 2.5% higher than February 2025, the strongest level since October 2024.
Otago’s average asking price has risen to $915,000, its highest point since December 2023, while Christchurch city has posted a record average of $749,000, with three–to–four–bedroom homes also hitting a new peak of $822,800.
Lloyd characterises the shift as a reset rather than a boom.
“Given the current economic climate, we’re unlikely to see a return to the rapid growth of previous years,” he said. “Instead, we are seeing a measured, sustainable recalibration, and while the tide has turned in a positive direction, the market is likely to favour steady, incremental growth as opposed to sharp spikes.”
Lloyd notes that buyer interest remains robust: “Our data shows a highly active market from a demand perspective, with year-on-year searches up around 18 per cent, however supply remains flat, which will also be factoring into pricing.” For brokers, the mix of rising prices, firmer vendor expectations, an improving new‑build pipeline and constrained stock underscores the importance of early pre-approvals, realistic price guidance and close attention to regional dynamics when structuring solutions for clients.
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