Listings climb while buyers take a cautious approach
New data from the Real Estate Institute of New Zealand (REINZ) show a modest year-on-year dip in the national median price, although most regions recorded gains and values remain broadly steady as listing numbers increase.
The national median price decreased by $4,000 (-0.5%) year-on-year to $761,000. Excluding Auckland, the median rose 1.5% to $690,000.
Thirteen of the 16 regions reported annual increases in median prices. Auckland’s median lifted 1.3% year-on-year to $964,000. Gisborne saw the strongest gain, up 11.3% to $690,000, followed by Southland (+8.9% to $465,000) and the West Coast (+7.8% to $385,000).
Confidence tempered with caution
“Across New Zealand, confidence in the property market is tempered with caution,” said REINZ chief executive Lizzy Ryley (pictured).
“While many expected the recent OCR change to encourage more activity, the history of REINZ data suggests that we may be cautiously optimistic that we will see an increase in activity in the market in the coming months.”
However, economists remain more cautious about the outlook. A Reuters poll of property analysts projected prices would climb just 1.3% this year, well down on earlier forecasts of 3.8% in June and 5% in February. Westpac’s latest Housing Market Update similarly noted the market remains “comatose after the excesses of the COVID era,” with the bank forecasting only a 0.6% rise in 2025.
Sales volumes slide
Sales slowed in August, down 3.7% year-on-year and 11.1% month-on-month to 5,866 nationwide. Excluding Auckland, sales fell 1.3% annually and 11.3% monthly to 4,052.
Only six regions reported an increase compared to August 2024, led by Waikato (+13.2%), Gisborne (+11.1%), and Southland (+8.1%).
“August has highlighted some interesting trends across the country,” Ryley said. “While sales have eased in parts of the market, most regions are still seeing increases in median prices. Properties are taking different lengths of time to sell depending on the area, which shows that while the market is active, buyers are considering their options carefully.”
Listings and time to sell
New listings increased 9.0% year-on-year to 8,769, with inventory reaching 30,000 properties – up 1.4%. Excluding Auckland, listings rose 6.5% to 5,481.
National median days to sell dropped by two days to 48. Nelson and Marlborough recorded the largest falls, down 11 days to 35 and 41 respectively. By contrast, the West Coast saw a 19-day increase to 57.
Auctions steady
August recorded 778 auction sales, representing 13.3% of all sales. Auckland led with 366 auctions (20.2%), followed by Canterbury with 199 (19.4%). Gisborne had the highest auction share at 42.5%.
Price index steady
The House Price Index (HPI) stood at 3,577, up 0.4% year-on-year and 0.3% month-on-month. Over the past five years, New Zealand’s HPI has grown at an average annual rate of 3.2%.
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