Lending confidence lifts as banks ease restrictions nationwide
New Zealand’s property market is gaining momentum this spring, with new REINZ data showing stronger sales, quicker turnaround times, and improving buyer confidence — trends that mortgage advisers say are already flowing through to loan activity.
The latest Real Estate Institute of New Zealand (REINZ) Property Report shows 6,346 residential sales in September, up 3.1% from a year earlier — the highest September total since 2020. Excluding Auckland, sales rose 7.5% to 4,421, reflecting stronger activity across regional markets.
“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 (pictured).
“Some regions bucked this trend; the West Coast and Marlborough saw longer selling times, potentially reflecting the completion of sales for properties that had been on the market for an extended period.”
Nationwide sales lift as buyers re-enter the market
Eleven regions recorded higher annual sales, led by the West Coast (up 56%), Marlborough (up 37%), and Nelson (up 32%). The national median days to sell fell to 43, down from 49 last year, with Nelson recording the biggest improvement.
“Some local salespeople are reporting a noticeable lift in activity across the market, with first-home buyers and owner-occupiers still the most active participants,” Ryley said.
“With the recent OCR drop of 50 basis points likely to influence further interest rate reductions, combined with the usual spring rush, salespeople are cautiously optimistic that activity will strengthen further through spring and into summer.”
The mortgages.co.nz & Tony Alexander Mortgage Advisers Survey also shows rising first-home buyer activity, with a net 33% of advisers reporting more enquiries — the highest level since March amid improved lending conditions and lower rates.
Prices steady overall, but regional records set
The national median price eased 1.5% year-on-year to $770,000, while excluding Auckland, the median slipped 0.7% to $690,000.
Ten of 16 regions reported annual price gains. Auckland’s median rose 0.8% to $978,000, while the West Coast and Southland both hit new record highs — up 14.6% ($447,000) and 7.8% ($525,000) respectively.
“This is the first time since January of this year that there has been any record regional median price, and the first time in over three years that two or more regions had record median prices,” Ryley said. “This shows renewed confidence in parts of the property market, where local conditions and sustained demand are driving price growth despite a national-level balance.”
The House Price Index (HPI) for September rose 0.8% month-on-month and 0.2% annually, bringing the index to 3,606. Over five years, average national HPI growth has averaged 2.8%, indicating steady long-term appreciation despite short-term volatility.
Regional highlights and auction momentum
- Auckland: Median price up 0.8% to $978,000; auctions made up 23.6% of sales.
- West Coast: Record high median of $447,000, up 14.6%.
- Southland: Median of $525,000, also a record, with listings up 9.4%.
- Canterbury, Otago, and Northland: Continued solid HPI growth led by Southland’s 5.7% annual increase.
National auction volumes rose to 889 properties (14% of all sales), up from 12.2% last year.
Outlook for advisers: Buyers confident, banks competitive
The combined findings from REINZ, Tony Alexander’s survey, and recent OCR cuts point to a housing market that is rebalancing rather than retreating.
Falling rates and faster loan approvals are giving borrowers renewed confidence to act, while regional price resilience suggests opportunities for first-home buyers and investors alike.
Mortgage advisers say clients are favouring flexibility over long-term certainty — a sign that borrowers are positioning for potential further rate cuts in late 2025.
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