Housing market steadies as Westpac, ASB weigh in
The Real Estate Institute of New Zealand (REINZ) has reported a year-on-year lift in sales for July 2025, despite subdued winter conditions and tighter listing volumes.
“We’re seeing the usual seasonal patterns play out, with buyers still active in the market even as listing volumes tighten ahead of spring,” said Lizzy Ryley (pictured), REINZ chief executive. “The lift in sales compared to last July suggests there’s a solid level of interest despite fewer new listings coming to market.”
The national median price rose 1.8% year-on-year to $767,250. Excluding Auckland, the median increased 3.9% to $695,000, while Auckland’s own median lifted 2.6% to $975,000.
Eleven of 16 regions saw price gains, with Nelson (+15.7%) and Otago (+11.1%) recording the strongest annual increases.
Mixed regional picture for sales and prices
National sales volumes were up 4.0% year-on-year to 6,319 properties. Excluding Auckland, sales climbed 6.1% to 4,421. Nelson posted the highest regional increase at 43.6%, followed by the Bay of Plenty (+18.9%), Hawke’s Bay (+13.5%) and Northland (+10.5%).
“Seasonally adjusted sales counts at the national level show sales were slightly down. Sales growth varied widely across regions, with strong rises in areas like Northland, while some regions experienced declines, reflecting a varied sales market across the country,” Ryley said.
New listings fell 4.2% year-on-year to 7,737, with Auckland down 2.4% and the rest of the country down 5.2%. Inventory levels dipped 0.4% to 30,430 properties. The median number of days to sell fell by one day to 48.
Economists flag stagnant recovery
Yen Nguyen, ASB economist, said the July REINZ figures showed that the housing market recovery “remains muted,” with the house price index (HPI) down 0.5% month-on-month (seasonally adjusted) and only 0.1% higher than a year ago.
“Overall, these results point to a stagnant housing market, despite a cumulative 225 basis point reduction in the OCR and significant declines in mortgage interest rates to date,” Nguyen wrote in an ASB commentary.
Auckland posted the sharpest monthly price drop (-1.2%), while Taranaki saw the largest gain (+2.1%).
Nguyen noted that “rising job insecurity… and slower wage growth are expected to keep homebuyers cautious” and forecast another 25bp OCR cut next week, with the cash rate potentially falling below 3% by the end of 2025.
Market balance keeping prices in check
Michael Gordon, Westpac NZ senior economist, described July as “another subdued month” for the housing market, with prices and sales “edging lower.”
“The REINZ housing report for July showed that the New Zealand housing market remains in an unusually well-balanced phase,” Gordon wrote in a Westpac commentary. “While lower mortgage rates have helped to spur higher levels of activity compared to a year ago, demand is being matched by an ample supply of homes hitting the market.”
The REINZ HPI fell 0.5% in July, led by a 1.2% drop in Auckland. Annual price growth was flat at 0.1%, with stronger performance in some dairy-intensive regions such as Taranaki (+5%) and Southland (+2.8%).
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