Source: Radio New Zealand
Infometrics said the increase in prices between January and February was the sharpest in two-and-a-half years. Unsplash/ Jakub Żerdzicki
‘Patient’ house buyers and sellers are prepared to negotiate or wait for the right price for their properties, the Real Estate Institute says.
The institute’s February data shows national median sale prices up 3.2 percent on a year earlier, to $795,000.
Auckland, Canterbury and Waikato had their highest number of sales since 2021 but, in general, homes were taking longer to sell around the country.
Most regions had median days to sell higher than their 10-year average for February. The national median was 56 days.
Across the country, there were 6523 sales in the month, up 0.3 percent compared to February last year.
Otago recorded a 13.2 percent increase in median price.
“The southern regions, particularly Otago and Southland, are maintaining strong momentum. In contrast, Northland continues to feel some downward pressure following recent severe weather and flooding. Nationally, the three-month trend points to a modest but steady lift in median prices nationally,” said institute chief executive Lizzy Ryley.
“The South Island is showing the most growth, Canterbury, Otago and Southland. A significant sales count happened in Auckland in February but the house price index for Auckland is flat. So it’s a mixed bag but relatively stable and you’re seeing patience on both sides of the negotiating table, with buyers and sellers.”
She said the war in the Middle East was creating many unknowns, on top of the approaching election.
“Interest rates have stabilised and I think there’s a bit of a view among buyers and sellers that it’s probably a good time to buy now to act before they rise. That’s why we’re seeing quite a reasonably active market.
“But none of us really knows how this impact of the ware and oil price and so on is going to have if it flows through into food prices and everything else. How the Reserve Bank will look at inflation and what they do with the OCR, that will probably flow through to the property market… but right now it’s not a frozen market, it’s an active market. You’ve got buyers and sellers waiting or negotiating for the right price.”
Investors were less active, she said.
Infometrics said the increase in prices between January and February was the sharpest in two-and-a-half years.
“Prices are still lower than a year ago across much of the North Island, including falls of 3.6 percent per annum in Gisborne and 2.9 percent in Wellington. Tasman is the only South Island region currently showing an annual price fall, while Southland has the strongest price growth, at 7 percent.”
It said Otago, Northland and Auckland had led the sales growth in recent months and the number of homes listed for sale dropped for the fourth consecutive month when seasonally adjusted, the longest run of declines since mid-2023.
“February’s result suggests more stability in the housing market, after sales declines in November 2025 and January 2026 had pointed towards a softening market. This assessment of a more stable market is reinforced by less negative trends for house prices and the stock of properties.
“However, the Iran War has recently led to significant increases in petrol prices and wholesale interest rates. If higher fuel prices continue for any sustained period, they will undermine New Zealand’s economic recovery and hit consumer confidence. In tandem with upward pressure on mortgage rates, international events could weaken housing market demand in coming weeks and lead to renewed downward pressure on house sales and prices.”
ANZ economists said the increase in prices was surprisingly strong but was unlikely to represent a shift in the underlying direction of the market.
“However, we are doubtful that this represents a shift in the underlying direction in the market. Other indicators of housing demand are not showing the same strength, including sales volumes – which remain a touch below their long run average – and days to sell – which lengthened further in February. Today’s data also refers to a period before the conflict in the Middle East broke out. Nervousness about how the conflict could impact the economy here will add to the sense of caution among buyers in the coming months.”
Sign up for Money with Susan Edmunds, a weekly newsletter covering all the things that affect how we make, spend and invest money
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
