Downturn over as modest property expansion enters fifth month
New Zealand’s median property price rose 0.3% in February 2025, marking the strongest monthly result since January 2024, according to CoreLogic.
The national median price now stands at $807,164, which is 16.9% below the peak recorded in early 2022, but 17.1% above the pre-covid level.
Prices fell 4.1% between March and September last year but have since steadily increased, suggesting that the mini-downturn has ended and that 2025 will be a year of growth, albeit modest.
CoreLogic Chief Property Economist Kelvin Davidson said this recovery was expected, given the series of interest rate cuts the Reserve Bank of New Zealand had made since August 2024.
“While the early signs of renewed growth for property values will be welcomed by many, the good vibes won’t be universal. After all, there are always two sides to the coin when it comes to house prices, and aspiring buyers would no doubt be happier if they were flat or falling,” he said.
“That said, with listings still abundant and debt-to-income ratio limits set to be a restraint if and when banks’ serviceability test rates fall further, a rampant boom in property values in 2025 seems unlikely.”
How to increase your chances of getting a great home loan deal
Shop around. Don’t assume your current bank will give you a great deal just because you're a loyal customer. New Zealand’s mortgage market is very competitive, so if you shop around, you could find a better option with another lender. Of course, as your mortgage adviser, I can help you with that.
Save a larger deposit. Consider stumping up a deposit of at least 20%, because the less you need to borrow, the less of a risk you'll represent to the lender – and lower-risk borrowers generally receive lower rates than higher-risk ones.
Check your credit score. Lenders will pull your credit report as part of their loan assessment process. The higher your credit score, the more likely you are to be offered a loan with a lower interest rate. If your score is low, aim to improve it by paying all your bills on time, repaying debt and limiting your applications for credit.
Consider loan features. Depending on your circumstances, you may want to choose a loan that allows repayment flexibility, through features such as an offset account, a redraw facility or the ability to make extra repayments.
Speak to a mortgage adviser. I can help you get a great deal – and save you time – by comparing lenders, negotiating on your behalf and managing your loan application. Contact me to discuss your options and apply for a pre-approval.