First-home buyers drive NZ housing rebound this spring
New Zealand’s housing market is showing signs of seasonal improvement, with stronger sales activity, rising attendance at open homes and auctions, and first-home buyers remaining the key drivers of demand, according to the latest NZHL Property Report by economist Tony Alexander (pictured).
The survey of 253 real estate agents shows the market remains firmly in buyer’s territory, but momentum is improving.
“A solid buyer’s market remains in place with evidence of more vendors entering the market to sell,” Alexander said. “Young buyers continue to have a strong presence, but investors appear to be net sellers of property, with a trigger for some being when a current tenant moves out.”
Agents also report that many vendors still hope for 2021 prices, while buyers remain cautious and prepared to walk away when offers are rejected.
“This month’s higher sales counts contributed to a six-day reduction in the national median days to sell,” said REINZ chief executive Lizzy Ryley.
More people attending auctions and open homes
A net 21% of agents said more people are attending auctions, up from 17% last month – the strongest reading since late 2023.
Open home attendance also rose, with a net 32% reporting higher turnout, the best since February.
“Recovery is underway and the recent cutting of one-year fixed mortgage rates to just below 4.5% will likely spur some additional buyer interest as we head through spring,” Alexander said.
REINZ’s figures mirror this trend, with 11 regions recording higher annual sales, led by the West Coast (+56%), Marlborough (+37%), and Nelson (+32%).
Prices steady overall, but confidence returning
A net 11% of agents said prices are still falling – an improvement from 13% last month and 38% in May – suggesting downward pressure is easing.
“Although more buyers are appearing in the market, the pricing dynamic remains subdued,” Alexander said.
Nationally, the median price eased 1.5% to $770,000, while two regions – West Coast ($447,000, +14.6%) and Southland ($525,000, +7.8%) – set new records.
The House Price Index rose 0.8% month-on-month and 0.2% annually, signalling steady long-term appreciation.
First-home buyers dominate as investors retreat
First-home buyers remain the most active group, with a net 53% of agents seeing more in the market, little changed from last month.
“Young people have been taking advantage of high listings, limited competition, lower prices, and greater credit availability since early 2023 – and there is no sign of this key dynamic easing,” Alexander said.
The latest mortgages.co.nz & Tony Alexander Mortgage Advisers Survey also found a net 33% of advisers reporting more first-home buyer enquiries – the highest since March.
Investor activity has softened, with only 7% of agents seeing more investor buyers. Many investors are selling instead, citing higher costs and tenant turnover.
More listings but sellers cautious
A net 53% of agents reported more property appraisal requests, up from 39% last month – a strong seasonal rise.
However, Alexander cautioned it’s too early to call a sustained increase in listings while prices remain flat.
“It is too early to firmly say potential vendors in extra numbers are feeling the time is right to sell,” he said.
Ryley said agents are “cautiously optimistic” that further rate cuts and spring activity will sustain momentum through summer.
Employment and finance still top buyer concerns
Buyer confidence remains fragile, with 55% of agents saying potential buyers worry about job or income security — the key barrier to a sustained upturn.
“It is probably not going to be safe to talk about a sustained upturn in the housing market until these concerns substantially back off,” Alexander said.
Market remains a buyer’s domain
Across New Zealand, a net 25% of agents said vendors remain the more motivated party, keeping the market in buyer’s hands.
“Apart from a brief period late in 2023, a buyer’s market has been present since the end of 2021,” Alexander said.
With sales volumes climbing, prices stabilising, and first-home buyer demand holding firm, both REINZ and NZHL data suggest the early stages of a market recovery are taking shape.
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