There was an increased number of new listings coming on to the market in March, up 5 percent. Photo: RNZ / REECE BAKER
Prices are down year-on-year and buyers have more options to choose from, but the Real Estate Institute says the housing market is still showing signs of improvement for owners and investors.
Nationally, the median price dropped 1.4 percent year-on-year in March, to $790,000. Outside Auckland, the median price was down 2.1 percent, to $700,000.
The house price index, which smooths movements in price caused by the makeup of the type of properties sold, was down 0.7 percent year-on-year.
West Coast median prices were up 11.5 percent compared to 2024 and Nelson's were down 11.4 percent.
There was also an increased number of new listings coming on to the market in March, up 5 percent. That meant national inventory levels were up 10.9 percent year-on-year and up 3.2 percent compared to February, and the days-to-sell measure increased.
But more houses were selling. The 7640 properties sold in the month was up 12.8 percent compared to a year earlier.
That was a positive sign that activity was improving, and sellers were meeting the market, Real Estate Institute acting chief executive Rowan Dixon said.
Month-on-month, house prices lifted by 2.6 percent nationally and 3.8 percent in Auckland.
But he said the large number of properties available for sale meant buyers did not have the same sense of urgency.
"If a buyer misses out on a property, they can easily find a similar one for sale.
"As interest rates continue to fall and the [official cash rate] drops once again, local salespeople around the country are anticipating stability in the market over the coming months, bringing renewed energy and hope for many navigating these changing economic tides."
He said there was a lot of activity in the Auckland market particularly.
"It's all showing really positive signs. Normally this time of year we're starting to see things come back, and that's not happening quite yet."
But he said he did not expect to see a major uplift in prices in the near term.
ANZ economists agreed sales volumes were trending higher, but said the new listings numbers were at decade-highs.
"That means price tension remains limited. All up, despite strengthening sales, recent data suggests downside risk to our forecast for house prices to rise 6 percent over 2025. The housing recovery is likely to remain gradual for some time yet, and global uncertainty is unlikely to do anything to encourage people to take the plunge."
Meanwhile, New Zealand Banking Association data also released on Tuesday showed the number and value of home loans in the second half of 2024 increased significantly compared to the first half.
The insights showed there were 56,938 new home loans in July to December 2024, up 21 percent from the previous six months. The overall value of new home loans increased by 24.7 percent to $23 billion.
Of the 56,938 new home loans, 26.7 percent were issued to first-time home buyers. The average value of a home loan for first-home buyers was $493,000, up 4.4 percent from the previous six months.
While 1.5 percent of home loan customers were behind on their loan repayments, 39.4 percent were paying more than their minimum repayments, similar to the previous six months.
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