Photo: RNZ
Activity continues to creep back into the New Zealand housing market, new data from the Real Estate Institute indicates - but some vendors are prematurely expecting falling rates to boost prices.
While January was a quiet month for sales, the number of properties sold in New Zealand increased 3.4 percent compared to the same time a year earlier, and 59.5 percent compared to January.
On a house price index basis, prices were down 1.2 percent year-on-year but up 1.4 percent over one month and 0.5 percent over three.
Median sales prices were down 2.4 percent year-on-year.
Sales activity has struggled to keep up with the number of listings coming on to the market in recent times, but there were some early signs that more buyers were making their move.
Some areas' activity picked up much more than others - Waikato sales were up 16.9 percent compared to 2024, Bay of Plenty 10.6 percent and Taranaki 20.6 percent.
The Real Estate Institute noted that in Waikato, investors were "notably present".
The number of new listings coming on to the market dropped year-on-year to 11,363. Inventory levels lifted 13.6 percent year-on-year and 10.2 percent month-on-month.
The median days to sell rose by three to 54 over the same period, although in Northland that measure had reached 70.
Just over a quarter of all properties sold for more than $1 million.
The institute said in Auckland, owner-occupiers, first-home buyers and investors were active.
"Some vendors were meeting market expectations and being realistic regarding asking price, while others had begun to expect a higher price. Attendance at open homes was good for the first few weeks of the campaign."
In Wellington, first-home buyers were active and the institute said investors were selling due to local rate increases.
"Most vendors believed that as interest rates had eased, their property values would increase, which wasn't the case."
Institute acting chief executive Rowan Dixon said the data showed growing stability.
"February saw a rise in sales, but median prices lagged, with only six regions recording an increase. High number of listings can give buyers less urgency-if they miss out on one property, plenty of similar options are still available," Dixon said.
"Reports show a positive outlook with most vendors setting realistic prices and aligning to market conditions."
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