Buyers still hold negotiation power – but that may be changing
Homeowners collectively trimmed $72.5 million from their original asking prices in the third quarter of 2025, according to new data from realestate.co.nz.
On average, vendors who reduced their prices took $34,598 off each listing – a clear sign that buyers are still negotiating hard in a relatively soft market.
However, there are early signs that the market may be starting to shift.
“The total value of reductions was less in Q3 2025 than it was in Q3 2024, meaning the gap between what sellers want and what buyers will pay is closing,” Vanessa Williams (pictured), spokesperson for realestate.co.nz, said.
Williams added the drop likely reflects rising buyer confidence as interest rates fall.
“When demand picks up, sellers don’t have to work as hard to close the gap,” she said.
realestate.co.nz also recorded a 12.2% year-on-year rise in users during the quarter – another sign of growing buyer activity as lower borrowing costs draw more people back to the market.
This data measures the difference between a property's original asking price when listed on realestate.co.nz and its price at the point of sale or withdrawal. While it doesn’t show the final sale price, it provides a strong signal of how sellers are adjusting to meet buyer demand.
Price cuts vary widely by region
Nationally, vendors who reduced their asking prices took an average of $34,598 off each listing in Q3 2025.
The largest average reduction was recorded in Coromandel, where sellers trimmed $61,788 from their original asking prices. Gisborne followed at $54,000, while Wellington ($45,718), Central Otago/Lakes District ($44,433), and Auckland ($42,919) rounded out the top five.
“Looking at average reductions per listing gives us a clearer picture of how much sellers are actually flexing,” Williams said. “These figures show that in many regions, vendors are making significant adjustments to meet buyer expectations and get deals over the line.”
Confidence growing as price gaps narrow
Williams said that as confidence improves and demand continues to rise, sellers may find they don’t need to adjust prices as much going forward.
“These figures show that in many regions, vendors are making significant adjustments to meet buyer expectations and get deals over the line,” she said. “But as confidence lifts, sellers may find they don’t need to adjust prices as much.”
The data aligns with broader market signals that conditions are slowly turning in favour of sellers. The Reserve Bank of New Zealand’s recent 50-basis-point OCR cut to 2.5% has lowered borrowing costs, and banks are already reporting higher enquiry levels from prospective buyers.
What this means for mortgage advisers
For mortgage advisers, the findings highlight a market in transition – one where buyers still have leverage, but lower rates are starting to shift sentiment.
The combination of reduced vendor discounts, increased buyer activity, and cheaper borrowing costs suggests that more clients may seek pre-approvals or refinancing advice heading into 2026.
Advisers who help borrowers navigate this changing environment – particularly first-home buyers looking to act before prices rise again – stand to benefit from renewed momentum in lending pipelines.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
