Date: 20th Jan 2026
House prices have always been one of New Zealand’s favourite topics of conversation, and for good reason! Property values are a pulse check on our economy, confidence, and communities.
For buyers and sellers wondering how house prices fluctuated across the country during 2025, and what the current trends in the housing market in New Zealand can tell us about what to expect as we head into 2026, keep reading.
According to the Real Estate Institute of NZ (REINZ), the New Zealand average house price is $770,000, essentially unchanged from the year before. Excluding Auckland, the median rose 1.7% to $691,500. The national House Price Index (HPI) also remained steady, sitting 0.3% higher than in 2024.
So, are house prices falling or increasing? At this stage, neither in any dramatic way. The New Zealand housing market is largely stable, with some regions showing modest growth while others have softened slightly. The overall effect is balanced rather than a clear upswing or downturn.
2025 was a steady period overall, though with noticeable regional variations.
Some areas have seen renewed confidence, while others have softened slightly or remained flat.
Buyer sentiment is cautious, and vendors are adjusting expectations in line with updated capital values. Demand remains steady, but more selective.
One of the stronger performers, with realistic pricing and consistent owner-occupier activity supporting growth.
Confidence is improving, particularly in centres like Tauranga and Rotorua, where first-home buyers and long-term homeowners continue to drive demand.
A softer patch, shaped by cautious first-home buyer activity and fewer investors in the mix.
A small dip year-on-year reflects a cautious buyer pool, but demand for well-priced homes remains steady.
Values dipped across the region, driven by cautious buyer activity and higher mortgage rates.
Several key levers are shaping the current New Zealand housing market:
The Reserve Bank of New Zealand held the Official Cash Rate (OCR) at 2.25% in September 2025, noting that inflation is expected to ease back toward the 2% midpoint of its target band by mid 2026. As interest rates gradually stabilise, borrowing conditions are becoming more manageable for buyers. However, global economic uncertainty means shifts may still be slow, and confidence will likely grow in stages rather than all at once.
Recent LVR adjustments have made it a little easier for both first-home buyers and investors to secure finance, particularly outside the major centres. That said, most banks still prefer applicants with stable incomes and a reasonable deposit, so strong financial preparation remains key.
Lending has loosened since 2023, but banks remain cautious. Clear documentation, steady income, and sensible debt levels continue to make the strongest impression. The more organised your application, the smoother the approval process tends to be.
Sales activity and listings
Recent REINZ data shows sales activity has been up by around 20% since last year, indicating more buyers are active again. At the same time, new listings have been slightly lower overall, while total available inventory has increased.
What does that mean? Are house prices going down? In practical terms, there are more properties on the market, but buyers are taking their time browsing, comparing, and waiting for the right fit rather than rushing.
Homes are generally taking longer to sell than during the peak years, often around six weeks from listing to contract. However, well-presented and sensibly priced homes, particularly in lifestyle and regional areas, are still moving faster.
Pricing remains heavily anchored to recent local sales (comparable sales). These, along with automated valuation models and professional appraisals, help ensure homes are listed where the market is prepared to meet them.
When a property aligns with the current comparable value, buyer engagement tends to follow.
New dwelling consents have eased slightly year-on-year. Higher material and labour costs continue to slow new construction, meaning fewer homes are entering the market than in recent building cycles.
Even so, many already-approved projects are still being completed, so supply is slowing rather than stopping, helping keep house prices relatively firm.
Population growth has remained steady, supported by returning New Zealanders and ongoing immigration. This has helped balance out lower investor activity. Regional centres such as Rotorua, Hawke’s Bay, and Wairarapa continue to benefit from families and professionals seeking more space and lifestyle value outside the main cities.
Inflation continues to ease, sitting back within the Reserve Bank’s target range. With borrowing costs gradually softening and employment holding steady, the broader economic picture points to a measured, stable housing market rather than dramatic ups or downs.
With house prices largely stable and borrowing costs slowly easing, the NZ property market remains balanced rather than leaning strongly towards buyers or sellers.
If you’ve been asking, “Should I buy a house now or wait?”. In NZ, it comes down to your circumstances and timeframe. Getting mortgage pre-approval early will give you clarity, and it pays to focus on what’s happening in your preferred region, not just the national average.
If you’re thinking about selling, steady prices mean presentation, timing, and realistic pricing remain just as important as ever. Well-prepared homes that align with recent local sales data are still attracting motivated buyers, even in a more balanced market.
Southland remains one of the most affordable regions overall, even after recent growth. At a suburb level, some of the lowest average asking prices (based on current realestate.co.nz data) can be found in places like Murupara in the Bay of Plenty, Tokoroa in Waikato, and Glenavy in Canterbury. These areas tend to appeal to buyers prioritising value, space, or long-term renovation potential.
For sellers, realistic pricing is key. Use current comparable sales from your agent to support your price, and present your home at its best. Minor improvements can make a meaningful difference to interest and the time it takes to sell. Timing your listing to align with periods of stronger buyer activity, such as spring, can also help the process run more smoothly.
While headlines tend to platform drama, the housing market New Zealand-wide is largely balanced. Buyers are active but cautious, sellers are adjusting expectations, and most regions are moving steadily rather than sharply up or down.
Whether you’re looking to buy or sell, the most valuable insights are always local. What’s happening in your suburb may look very different to the national picture. If you’re exploring your next move, our team can help you understand current demand, realistic price expectations, and what similar properties are doing in your area.
Get in touch with your local Tremains office for a free property appraisal or a friendly market chat, and make your next step with confidence.