New Zealand House Prices Hold Steady, Wellington Drops

Stay informed on the latest trends in the New Zealand housing market, including stable prices nationwide and a notable decrease in Wellington.

The real estate market in New Zealand continues to show signs of stagnation, with an increase in the number of houses for sale and asking prices remaining lower than they were a year ago. In May, the average asking price fell by 0.8 percent to $859,301 compared to the previous month, and was 1.6 percent lower than the same time last year. This trend has created a buyer's market, offering more options and potentially better bargaining power for those looking to purchase a property.

Sellers, on the other hand, are facing heightened competition and are advised to adopt careful pricing strategies, ensure optimal property presentation, and implement effective marketing strategies to stand out in the crowded market. In Auckland, the average asking price was $1.06 million, in line with the national average, while Waikato saw prices rise by about 3 percent and Canterbury experienced a slight increase. Central Otago/Lakes remained the most expensive region with an average price of $1.45 million, a decrease of 8.6 percent from April but still nearly 1 percent higher than a year ago.

However, the most significant price drop was seen in Wellington, where the average price plummeted by 13.4 percent to $739,497 in April, the lowest since November 2020, and 14 percent lower than a year ago. This decline could be attributed to public service job cuts and a tightening job market, which may be impacting both the demand for properties and asking prices. In a softer market, sellers often rely on adjusting prices to expedite property sales, as price remains a flexible factor compared to other fixed attributes like location or property size.

It remains uncertain whether the New Zealand real estate market has reached its lowest point, but the increase in housing stock suggests that conditions are currently favoring potential buyers. The upcoming changes to bank lending rules by the Reserve Bank, set to take effect next month, could also have a gradual impact on the market dynamics. As the market continues to evolve, both buyers and sellers will need to adapt to the changing landscape to navigate the uncertainties and opportunities that lie ahead.