Market stabilisation signals a steady spring for NZ homes
The housing market in New Zealand appears to have started the summer on a steadier footing, according to the Real Estate Institute of New Zealand (REINZ). In October, around 7,505 residential property sales were recorded across the country, marking a meaningful pickup from September as buyers and sellers navigated a more predictable market environment.
REINZ reports that October sales were up 15.4% compared with September, suggesting that activity is gathering momentum as buyers re-enter the market after a seasonal lull. The annual comparisons also point to a market finding traction, with sales up around 6% from the year prior. This mix of month-to-month and annual gains hints at a market transitioning from the post-pandemic highs and adjusting to a steadier pace rather than a rapid swing in demand.
Several factors appear to be contributing to this stabilisation. Mortgage rates that remain near multi-year highs have started to flatten in recent months, keeping borrowing costs predictable for many buyers. At the same time, sellers seem to be pricing more competitively, helping to smooth out the sharp price fluctuations seen in previous periods. Regional variations persist, with some areas showing stronger activity than others, but the overall nationwide picture points to balanced demand and supply dynamics.
What the October numbers mean for buyers and sellers
For prospective buyers, the October data suggests there could be more opportunities this spring, particularly in markets where listings have increased and days-on-market have shortened. Buyers who are prepared with pre-approvals and clear budgets can potentially capitalise on more realistic pricing environments that emerged as sellers align expectations with current market conditions.
Sellers, meanwhile, may benefit from a broader pool of motivated buyers as activity remains resilient. Homes priced realistically and marketed with a clear value proposition are more likely to attract offers in a timely fashion, reducing the risk of extended selling periods. Realistic pricing is increasingly emphasised by agents as a cornerstone of a successful listing strategy in the current climate.
Regional trends continue to shape the national narrative. While some locales experience brisk demand and quicker sales, others show more modest activity. This heterogeneity underscores the importance for buyers and sellers to work with local agents who understand the nuances of their specific market, including current inventory levels, days-on-market, and recent comparable sales.
Looking ahead to summer
As New Zealand moves further into the southern hemisphere’s summer, the housing market is expected to remain active but more stable. The October data provides a foundation for cautious optimism among industry stakeholders, with a sense that the market has found a sustainable rhythm rather than the extreme volatility seen during other cycles. Policymakers and lenders will likely keep a close eye on price trajectories, affordability dynamics, and lending conditions to ensure the market remains accessible to a broad base of buyers while supporting sensible pricing for sellers.
Overall, October’s results from REINZ suggest a housing market that has stabilised at a healthier level of activity. While there will still be regional and price-point differences, the national trend points toward a more balanced spring and summer, with buyers and sellers navigating a clearer path to closing deals.
