Modest house price gains continue as lending environment shifts

New Zealand’s property market has notched another small increase, with national median prices rising 0.3% in April 2025, according to new data from Cotality.

This marks the fourth consecutive monthly rise and takes the national median to $819,096 – the highest level since June 2024. While the figure remains about 16% below the market’s January 2022 peak of $974,045, Cotality Chief Property Economist Kelvin Davidson said the gains suggested the current upturn was unfolding in line with expectations.

“Clearly, lower mortgage rates have been a strong support for property values in recent months, giving more buyers the confidence and ability to enter the market,” he said.

Townhouses and standalone homes leading the recovery

The increase in values has been spread across property types, with flats (typically townhouses) up 0.9% since January, standalone houses up 1.0% and lifestyle properties up 0.2%.

While the growth trend appears more stable than the short-lived bounce in late 2023, Davidson noted several factors were preventing a rapid rebound. High listing volumes were giving buyers plenty of choice and negotiating power, while new lending restrictions were beginning to bite.

“As interest rates for internal serviceability tests at the banks fall to less than 7%, the caps on debt-to-income ratios for mortgage lending are reportedly becoming a bigger consideration for more borrowers,” he said.

Steady growth expected for 2025

Davidson said property values remained on track to rise about 5% over the course of the year – a modest increase by historical standards, but a potentially welcome development for buyers and investors navigating lending challenges.

“This latest emerging phase of growth seems to have stronger fundamentals than the previous one, but even so, a subdued economic backdrop still looms as a restraint,” he said.

An opportunity for agents and buyers alike

With prices showing steady growth and lending rules shifting, there’s a real opportunity for well-prepared buyers to make progress in 2025. 

I’d love to work with you and help your buyers get pre-approved and loan-ready, so they can move quickly when they find the right home. If you’ve got motivated buyers on your books, I’d really appreciate your referrals.