New Zealand’s residential property market remained largely flat in June, with modest value increases in some areas and a dip in new listings as winter set in. Despite subdued national movement, signs are emerging of a market in transition, with shifting buyer behaviour, softer interest rates, and increasing first-home buyer activity beginning to shape the second half of the year.
Modest value growth amid ongoing variability
According to the latest Hedonic Value Index from Cotality NZ (formerly CoreLogic), property values across New Zealand rose slightly by +0.2% in June. This uptick reversed two consecutive monthly dips and brought the national average value to $815,389. While this remains -16.1% below the January 2022 peak, values have crept up by +1.1% since September last year and are +0.6% higher in 2025 so far.
Regional performance was mixed, with Christchurch and Tauranga both recording +0.6% growth, Hamilton rising +0.3%, and Dunedin up by +0.2%. Auckland and Wellington remained stable overall, though pockets of both cities saw small movements.
LJ Hooker Head of Network NZ Campbell Dunoon says the modest gains reflect the complex balance between favourable mortgage rates and market caution.
“We’re seeing the positive impact of declining interest rates, but that’s being tempered by high stock levels and uncertainty around employment,” Dunoon said. “It’s created a dynamic where buyers are back in the market—but they’re being selective and patient.”
Buyers in control – for now
Lower mortgage rates are supporting buyers, but the abundance of listings has reduced urgency and maintained their bargaining power.
“The balance of power is still tipped in favour of buyers. They’re taking their time and often have multiple options to choose from. That’s particularly true in larger cities where stock remains high,” Dunoon said. “However time is ticking and as the market stabilisation continues it might now be time to act before the dynamic between buyer and seller stabilises.”
The subdued labour market is also a key factor, with job security concerns and tighter household budgets affecting confidence and activity. However, this environment presents an opportunity for first-home buyers and small-scale investors to re-enter the market at a more accessible price point.
Auckland and Wellington hold steady
Auckland’s market continued its patchy performance in June, with localised gains and losses cancelling each other out. Franklin rose +0.5% and Auckland City ticked up +0.3%, while Papakura declined -0.7% and other subregions showed modest falls.
Wellington also remained stable overall, with small movements across Lower Hutt (-0.2%), Upper Hutt (+0.2%), Porirua (+0.1%) and the Kāpiti Coast (flat). As in other parts of the country, public sector job uncertainty and a high number of listings are key influences in the capital.
“Both Auckland and Wellington are still working through a high volume of listings,” Dunoon said.
“That oversupply continues to cap price growth for now, but it also means buyers have more choice and sellers need to be realistic.”
Listings drop as winter bites
Realestate.co.nz reported a 2.5% year-on-year decline in new listings, with 7,612 properties coming to market in June. Sellers appeared to take a step back as winter arrived, especially in Nelson, which saw its lowest number of new listings for any June in 18 years.
“We often see a seasonal slowdown in winter, but this year it feels like sellers are particularly cautious. Some may be waiting for spring, while others are holding off for clearer economic signals.”
National stock levels have been trending downward since March, falling from 36,870 to 32,384 in June. Auckland’s stock rose slightly year-on-year (+4.2%) to 12,670 properties, while Southland saw the biggest drop in available properties (-12.8%).
Asking prices remain flat
The national average asking price dipped slightly to $855,360, down 0.9% compared to June 2024. It’s now been two and a half years since the national average asking price exceeded $900,000.
Southland continued its standout performance, hitting an all-time high average asking price of $568,647—up 8.6% year-on-year. Northland, by contrast, saw a notable drop, falling 9.1% to $773,681—the first time it has dipped below $800,000 since July 2024.
“While prices have largely plateaued, there are still bright spots across the regions. Southland’s sustained momentum shows that local factors—like lifestyle appeal and relative affordability—can still drive strong results.”
Auckland CVs back in the spotlight
The release of Auckland’s updated Council Valuations (CVs) has given buyers and sellers another tool for decision-making. While the CVs are based on data that’s now 12 months old, they still appear to align with current market conditions.
“CVs are just one of many data points, but they can help buyers and sellers align on price expectations. Given how little asking prices have moved, they’re arguably more relevant now than they were during the boom years,” Dunoon said.
What’s ahead?
Looking forward, the current trends are expected to continue through the rest of winter.
“We’re not expecting any sudden surge in values. But the foundations are there for a more active spring—lower interest rates, buyer demand, and growing interest from first-home buyers and investors. When listings pick back up, we could see some real momentum build,” Dunoon concluded.
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