New Zealand’s housing market kept moving in October, with home values up 0.2% nationally, according to the latest Cotality NZ Home Value Index. It’s another steady month of growth, showing confidence is coming back as interest rates stabilise and conditions improve heading into summer.
That confidence was also clear in Realestate.co.nz’s October Property Report, which recorded a 5.5% rise in new listings year-on-year, the highest October listing level since 2018. Sellers are becoming more active, encouraged by stronger buyer demand and better lending conditions.
“We’re seeing balance return to the housing market,” LJ Hooker Head of Research Mathew Tiller said.
“The strong price gains from earlier in the year have eased, but what’s replaced them is stability and confidence, both good signs heading into summer.”
Regional trends: southern cities leading
Dunedin (+0.7%) and Christchurch (+0.4%) led the main centres in October, according to Cotality’s latest data. Both cities continue to benefit from relative affordability, solid local economies and active buyer interest. Tauranga and Wellington each lifted 0.2%, Hamilton held steady, while Auckland dipped slightly by 0.2%.
“The smaller main centres are performing well right now,” Tiller said.
“Affordability is a big drawcard, and as borrowing conditions improve, we’re seeing more buyers look beyond Auckland and Wellington for value and lifestyle.”
Within Auckland, results were mixed.
“It’s a bit of a mixed bag across Auckland,” he said.
“Values rose in Franklin and on the North Shore but softened in Auckland City and Waitakere. There are fewer homes for sale than a year ago, which is giving sellers a bit more leverage and helping keep prices steady.”
Sellers returning as confidence builds
Realestate.co.nz data shows 12,209 new listings were recorded nationally in October, up 5.5% on the same time last year. Fifteen of 19 regions saw gains, including strong lifts in Gisborne (+22.8%) and the Coromandel (+20.6%).
The total number of homes available also rose 3.9% year-on-year to 33,588, with Auckland (+10.6%), Wellington (+8.9%) and the West Coast (+8.9%) recording the biggest increases.
“After a few quieter years, more sellers are coming back to the market,” Tiller said.
“There’s a stronger sense of stability around prices, and with buyers more active, vendors are feeling confident about listing now rather than waiting.”
Average asking prices were up 1.1% on last year to $862,563 nationally. Gisborne led with a 28.7% annual rise, while Central Otago / Lakes reached a record $1.65 million, the first region in New Zealand to pass $1.6 million.
“Price stability is giving both buyers and sellers the confidence to act,” Tiller said.
“Even with more listings coming on, values are holding firm, which shows demand is keeping up.”
Lending conditions improving
Falling interest rates and more competitive lending have helped boost activity. With the Reserve Bank’s final OCR decision for 2025 due later this month, and another 0.25% cut possible, borrowing costs should stay favourable through summer.
“After two years of higher borrowing costs, this is welcome relief for homeowners and buyers,” Tiller said.
“Banks are competing harder for business, offering sharper rates and more flexibility, which is helping more people get back into the market.”
Investor confidence is also improving, supported by steady rents and better affordability.
“We’re seeing investors take another look, especially in areas where yields are solid,” Tiller said.
“Lower rates and more realistic prices are making property investment appealing again.”
Balanced outlook heading into summer
As the market heads into its busiest months, indicators point to continued momentum.
“All signs suggest we’ll finish 2025 on a positive note,” Tiller said.
“The combination of steady prices, improving affordability and more homes for sale is setting the stage for a balanced market in 2026.”
Cotality’s latest data supports that outlook, showing affordability has improved and economic conditions are expected to strengthen further in the new year.
“We’re not expecting a sharp upswing in prices,” Tiller said.
“What we’re likely to see is gradual, steady growth, the kind of recovery that’s sustainable for both buyers and sellers.”
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