New Zealand housing market: why buyers still have the upper hand

New Zealand’s housing market remains subdued, with property values continuing to drift rather than move decisively in either direction.

Cotality’s July Home Value Index recorded a national median property value of $804,303. Values fell by 0.3% during July, were down 1.0% over the three months to July and remained 0.7% lower than a year earlier. National values are still 17.7% below the January 2022 peak.

This is not the backdrop for a rapid housing recovery. Instead, the market continues to be characterised by cautious buyers, elevated listings and sellers who are having to adjust their price expectations.

A regional market, not one market

The national figures continue to conceal significant regional differences.

Auckland’s median value was $1,025,112 in July, down 0.5% for the month, 1.4% over the quarter and 2.4% annually. The region remains 24.0% below its peak. Wellington was softer again, with values down 0.6% in July and 2.1% over the year, sitting 26.5% below its peak.

Christchurch continues to look more resilient. Values rose 0.1% in July and 3.6% over the past year, leaving the city only 1.2% below its previous peak.

The contrast between Auckland, Wellington and Christchurch reinforces the importance of looking beyond national headlines. Local employment conditions, population growth, new listings, housing supply and the type of property being purchased can all have a significant impact on the outcome.

What does this mean for buyers?

For buyers, the current market still offers several advantages:

• More time to complete due diligence and compare properties.

• Greater ability to negotiate on price and conditions.

• Less pressure to make rushed decisions.

• More opportunity to assess building quality, insurance, flood risk and future maintenance requirements.

  
  

First-home buyers in particular may find the current environment more approachable than the highly competitive conditions experienced in previous years. However, lower house prices do not automatically mean a property is affordable. Servicing costs, deposit requirements, rates, insurance and ongoing maintenance all need to be included in the numbers.

For sellers, realistic pricing remains essential. Buyers have access to more information than ever and are increasingly selective. A well-presented home in a desirable location can still attract strong interest, but an ambitious asking price may result in a longer campaign and eventual discounting.

If you’re considering buying or selling, we can help you understand the lending implications, estimate your likely borrowing capacity and compare the different loan structures available. We can also help you review your wider financial position so you can make a confident property decision based on your goals, budget and long-term plans. Get in touch with one of our financial advisers for a no-obligation conversation.