Property market remains in “holding pattern”

New Zealand’s property market continues to show signs of stability, with recent data from realestate.co.nz indicating a modest increase in sales activity.

In May, new residential property listings rose by 2.9% year-on-year, reaching 9,489 nationwide. This uptick suggests a gradual return of seller confidence.

Total housing stock also saw a year-on-year increase of 5.6%, bringing the number of properties available to 34,415. However, all 19 regions experienced month-on-month declines in stock levels, with Gisborne, Southland and Otago recording the most significant drops. This could indicate that properties are beginning to move more quickly in certain areas.

Despite these shifts, the market remains balanced. The national average asking price edged up by 0.8% year-on-year to $864,348, reflecting steady pricing trends. Notably, Wellington's average asking price increased by 12.9% compared to May 2024, reaching $828,531. This surge is partly attributed to a 32.1% decrease in new listings in the capital, suggesting limited supply may be influencing prices.

“We’ve had over two years of price stability and there’s no sign of real change just yet,” realestate.co.nz CEO Sarah Wood said.

“Where does this put us in the property cycle? It’s hard to tell as immigration isn’t supporting a growing market at present, so we continue to remain in a holding pattern, waiting for either demand to rise or economic indicators to shift before we see meaningful movement.” 

Ms Wood also noted that while stock levels were high, the number of properties remaining on the site for less than 30 days decreased in May compared to April. This suggests that buyers still have time on their side to complete due diligence and make considered decisions.

If any of your contacts need help buying a property in the current market, I’d be grateful if you could refer them to me.