Housing market steadies after months of decline

New Zealand’s median property price rose slightly in September, breaking a five-month run of declines and offering a hint that the housing market may be stabilising.

The national median price lifted 0.1% to $810,141 during the month, according to Cotality, although that followed a cumulative 1.6% fall between April and August.

Cotality Chief Property Economist Kelvin Davidson said the modest gain likely reflected a mix of lower mortgage rates and early signs that the housing market and broader economy were beginning to stabilise. He noted that the improvement in property values aligned with recent easing in mortgage costs and a gradual lift in sales activity, both of which suggested tentative progress after several months of weakness.

City-level results remain mixed

Quarterly data showed differing results across the main centres, highlighting how recovery was unfolding unevenly across regions. Prices fell 1.6% in Auckland and 0.8% in both Wellington and Hamilton, while Christchurch recorded a 0.4% gain and Tauranga was up 1.2%.

Mr Davidson cautioned that the national lift should not be over-interpreted, and that it was “far too early” to conclude that it marked the start of a sustained rise in prices. 

“After all, the stock of available listings – while falling – remains relatively high, and caution continues to pervade the market,” he said.

“On top of that, even though some economic measures – including filled jobs – are looking encouraging, others are less positive. In short, we’re not on solid economic ground just yet.”

What buyers need to know

Mr Davidson said the current environment may present opportunities for some. 

“Of course, there’s always two sides to the housing market coin, and it’s a good time to be a buyer, provided they can get the finance,” he said. “In particular, first home buyers remain a strong presence in the market and mortgaged multiple property owners have returned in greater numbers too.”

Improving your chances of approval

Borrowers looking to purchase should review their finances before applying. Lenders will generally look for:

• Stable income. Demonstrating consistent earnings reassures lenders about repayment ability.
• Reduced debts. Paying down personal loans and credit cards can strengthen your application.
• Good credit history. Ensuring all bills and existing loan payments are up to date helps build trust.
• Deposit savings. The larger your deposit, the greater your borrowing power and flexibility.
• Professional guidance. A mortgage adviser can help you compare loan products, prepare documentation and structure your application to maximise approval chances.

A well-prepared application can make all the difference – I can guide you through the process.