Momentum slips in April: Buyers step back
New Zealand’s housing market upturn has stalled, according to the latest NZHL Property Report by economist Tony Alexander (pictured).
Based on responses from 267 licensed real estate agents, the April survey highlighted a sharp shift in buyer sentiment, with high listings and global uncertainty prompting many to delay purchases.
“Buyers have stepped back from the market, feeling strongly that time and negotiating power are both on their side,” Alexander said.
Still, CoreLogic data shows home values edged up 0.3% in April to $819,096—the highest since June 2023—marking the fourth consecutive monthly gain and signalling a slow but ongoing market recovery, despite values remaining 16% below their January 2022 peak.
Open homes and auction attendance drop
For the first time since July 2023, more real estate agents reported declining auction attendance than increases. A net 9% observed fewer people at auctions, reversing March’s net 11% increase and February’s 19% rise.
Open Home traffic also declined sharply. Only a net 4% of agents reported more visitors—down from 27% in March and 43% in February. This 31% drop far exceeds the seasonal norm of around 10%.
Price pressure intensifies, FOMO recedes
Market weakness is becoming more visible in price trends. A net 23% of real estate agents said prices in their area are falling—up from just 3% last month. Buyers are offering only “heavily discounted prices,” avoiding homes needing work, and quickly walking away from inflexible vendors.
Fear of missing out (FOMO) has also faded, with just 6% of agents observing it among buyers, down from 14% last month and 19% in October 2023. This is the weakest level since June 2023, when only 1% reported it.
First-home buyers stay active despite market shift
Despite the broader softening, first-home buyers remain a strong presence. A net 31% of real estate agents reported seeing more first-time buyers—down from 52% last month, but still well above the five-year average of 20%.
“The residential real estate market in New Zealand has been driven for two years now by young buyers and they remain in attendance, taking advantage of their buying power amidst a plethora of property listings,” Alexander said.
Investor interest slows, selling interest remains
Investor momentum is fading. A net 4% of real estate agents said more investors are looking to buy, down from 18% last month and 27% two months ago. Meanwhile, a net 18% of agents said more investors are looking to sell—down from the 32% peak in February, but still elevated.
The primary motivator for investors remains “the hope of finding a bargain,” with fewer driven by expectations of rising prices or lower interest rates.
Offshore enquiry drops sharply
International buyer interest has fallen, with a net 24% of real estate agents reporting reduced offshore enquiries—up sharply from just 9% in March. The report suggests this may reflect fading interest in New Zealand as a haven amid foreign political unrest.
Appraisal requests ease with market cooldown
Listing volumes remain high, but growth is slowing. A net 12% of real estate agents received more appraisal requests this month—down from 43% in March and 68% in February. The approach of winter and softer demand may soon stabilise stock levels.
Top buyer concerns: Finance and employment
Access to finance and employment security remain top concerns for buyers.
Agents reported growing difficulty in securing loans, possibly due to “a deterioration in loan application times” observed in a separate mortgage broker survey. Worry about overpaying (FOOP) has now risen for four straight months.
Buyer’s market grows stronger
Despite a 2% fall in mortgage rates since mid-2023, market sentiment remains in favour of buyers. A net 39% of agents said it’s a buyer’s market—an intensity that continues to grow.
“The country was only in a seller’s market for a very short period of time in the middle of 2023,” Alexander said.
