Cautious Confidence Returns to the Property Market - REINZ stats May 2025

Cautious Confidence Returns to the Property Market

The Real Estate Institute of New Zealand (REINZ) has released figures for May, revealing a moderately more active market as the country heads into the winter season. While the number of sales has increased compared to the same period last year, this growth has been accompanied by a decline in the national median price and a slowdown in the number of new listings coming to the market.

New Zealand’s median price has seen a year-on-year decline of 0.9%, settling at $763,000. When considering New Zealand, excluding Auckland, the median price remained stable over the year at $689,000. Conversely, Auckland experienced a yearon-year decline of 3.5%, resulting in its median price reaching $975,000. Eight out of the sixteen regions have reported an increase in median prices compared to May last year, with Southland leading with a notable 10.0% increase, rising from $450,000 to $495,000. The most significant year-on-year decline in median price was observed in Manawatu-Whanganui, which decreased by 5.4%, from $560,000 to $530,000.

The stability in interest rates has encouraged more buyers to enter the market, though levels of confidence vary by region. While some areas are experiencing consistent conditions, certain cities are still navigating changes in affordability and demand trends. In May 2025, the number of properties sold in New Zealand rose by 8.9% compared to the same month last year, increasing from 6,579 to 7,166 sales. When excluding Auckland, sales increased by 11.3%, from 4,593 to 5,114. Regionally, Northland recorded the highest year-on-year increase, rising 33.3% from 171 to 228 sales. Other regions with notable sales increases included Tasman (+29.7%), Marlborough (+23.1%), and Manawatu-Whanganui (+18.7%).

This May, New Zealand experienced a 2.9% increase in listings compared to the year prior, totaling 9,489 listings. However, when excluding Auckland, there was a slight decline of 0.9% in listings, totaling 5,835. The inventory levels in New Zealand continue to rise, increasing by 5.6% year-on-year to 34,415 properties available for sale. Nationally, 875 auction sales were reported, representing 12.2% of all sales. For New Zealand, excluding Auckland, there were 434 auction sales, accounting for 8.5% of the total sales. Additionally, the median number of days to sell properties in New Zealand has increased, rising by three days to 47, while in New Zealand, excluding Auckland, it rose by four days to 47. The increase in the median days to sell reflects a market that, while more active in terms of transactions, is also characterised by greater buyer caution. Purchasers are taking longer to commit, which local agents suggest could be due to a lack of buyer urgency and the fact that buyers have time to find a property that best suits them.

The House Price Index (HPI) for New Zealand is currently at 3,601, showing a year-on-year increase of 0.1% and a decrease of 0.6% compared to April 2025. Over the past five years, the average annual growth rate of New Zealand’s HPI has been 4.2%. Southland remains the highest-ranked region for HPI movement, taking the top place for 11 consecutive months. (REINZ)

Regional highlights:

- Northland had the highest increase in sales count, up 33.3% year-on-year, from 171 to 228 sales. Tasman followed with a 29.7% year-on-year increase, from 64 to 83 sales.

-  Only three regions reported an increase in listings compared to last year. Those were:

                                                                          – West Coast, up 30.4% (46 to 60 listings)

                                                                          – Gisborne, up 23.3% (30 to 37 listings)

                                                                          – Nelson, up 15.1% (152 to 175 listings).

- Eight regions had year-on-year median price increases. The three largest increases compared to May 2024 were Southland (+10.0%), West Coast (+6.2%) and Nelson (+2.2%)

Regional Analysis - Northland

The median price for Northland decreased by 2.9% year-on-year to $631,000

Owner-occupiers, first home buyers and local buyers were the most active across the region, with agents in Kerikeri stating there is a slight decline in higher-end properties. Some vendors had realistic expectations, while others were still a bit higher than current market valuations. Attendance at open homes was varied, with some properties seeing high numbers, while others reported little to none. Auction room attendance saw good bidder numbers and clearance rates in Whangarei.

Market sentiment was influenced by buyers’ lack of urgency, decreased interest rates, and the increased number of active first-home buyers, which resulted in a relatively steady and flat market. Local salespeople cautiously predict a small window of opportunity for current properties to sell, with no influx of new properties on the market during winter. (REINZ)

The current median Days to Sell of 56 days is more than the 10-year average for May which is 52 days. There were 38 weeks of inventory in May 2025 which is 7 weeks less than the same time last year.

Regional Analysis - Auckland

The median price for Auckland decreased by 3.5% year-on-year to $975,000

Owner-occupiers, first home buyers, investors, and developers were all active across the region this month. Most vendors met market expectations regarding the pricing of their properties, while others kept firm to higher expectations. Attendance at open homes varied, with most reported numbers falling below average. Auction room activity was also mixed regarding attendance and clearance rates; however, most indicated slow, gradual improvements.

Factors such as easing interest rates, high levels of available stock, job security concerns, and a lack of confidence influenced market sentiment. Local agents cautiously predict that the market will improve slowly but steadily over the next three to six months, possibly with a seasonal drop in sales. (REINZ)

The current median Days to Sell of 46 days is more than the 10-year average for May which is 43 days. There were 26 weeks of inventory in May 2025 which is 1 week less than the same time last year.

Regional Analysis - Waikato

Waikato’s median price increased by 1.6% year-on-year to $740,000

All buyer types were active across the Waikato region in May, with more enquiries and sales from investors. Vendor expectations around asking price remained mixed, and in most cases, vendors negotiated through ‘lowball’ offers to reach realistic outcomes. Attendance at open homes remained steady across most listings, although Hamilton reported an increase in attendance as buyer confidence rose.

Auction room attendance remained steady, with a notable lift in overall interest. Factors such as increased buyer confidence, easing interest rates, recent OCR activity, increased buyer motivation, and rising sales all influenced market sentiment. Local salespeople are cautiously optimistic that the upcoming months will remain steady with some pockets of growth, especially as confidence continues to rise. (REINZ)

The current median Days to Sell of 47 days is more than the 10-year average for May which is 44 days. There were 22 weeks of inventory in May 2025 which is 5 weeks less than the same time last year.

Regional Analysis - Bay of Plenty

The median price for the Bay of Plenty increased by 0.9% year-on-year to $822,000

Owner-occupiers and first home buyers were the most active, with a noticeable increase in investors re-entering the market. Most vendors were realistic about pricing their properties. However, others were generally optimistic when first entering the market, hoping to meet market expectations and secure a sale. Attendance at open homes was generally good, increasing throughout the month. Auction room activity varied across the region, with attendance also growing, along with higher bidding numbers and stronger clearance rates. However, others saw properties passed in at auction.

Factors such as buyers’ lack of urgency, increased active buyers, increased positivity, and heightened competition in some auction rooms influenced market sentiment. Local agents are cautiously hopeful that the market will remain fairly steady over winter and see more activity later in the year. (REINZ)

The current median Days to Sell of 51 days is more than the 10-year average for May which is 47 days. There were 23 weeks of inventory in May 2025 which is 2 weeks less than the same time last year.

Regional Analysis - Gisborne

Gisborne’s median price was the same as in May 2024, at $595,000

Owner-occupiers were the most active buyer group, closely followed by first home buyers and investors. However, the level of enquiry for first home buyers and investors was not at the levels of previous months. Most vendor expectations were realistic and met market conditions. Attendance at open homes for new properties was good, with slightly lower attendance reported for listings that have been on the market for a while. Auction room attendance was relatively well-supported.

Factors like increased motivation to transact, falling interest rates, and increased optimism had a brighter impact on market sentiment. Local salespeople predict the market slowing down for the usual winter cooling period, although they comment that there are plenty of positive signs for spring. (REINZ)

The current median Days to Sell of 52 days is more than the 10-year average for May which is 44 days. There are 11 weeks of inventory in May 2025 which is 3 weeks more than last year.

Regional Analysis - Hawke's Bay

Hawke’s Bay’s median price decreased by 1.2% year-on-year to $667,000

First home buyers were the most active. Local agents report there was a slight decline in buyers looking to purchase mid-range priced properties. Some vendors were choosing to stick to their original price expectations, which don’t always meet market expectations. Attendance at open homes was similar to previous months, increasing slightly. Attendance at auctions improved, which is also similar to previous months, with a few more buyers looking for a bargain.

Market sentiment was influenced by both sides of the transactional market, making them less willing to negotiate to come to an agreement on price. Local salespeople cautiously predict the market to continue as it is now, with the usual lower listings in the winter months. (REINZ)

The current median Days to Sell of 49 days is more than the 10-year average for May which is 40 days. There were 15 weeks of inventory in May 2025 which is 2 weeks less than the same time last year.

Regional Analysis - Taranaki

Taranaki’s median price increased by 1.7% year-on-year to $585,000

Owner-occupiers continue to be the most active buyers in the region. However, investors and first home buyers were visible, and enquiries were increasing. Vendor expectations regarding price are generally realistic, but not all, with others feeling that if they wait on the market for long enough, they’ll achieve their desired price. Attendance at open homes declined over May, which local agents attributed to an increase in new listings, paired with the cooler weather.

Increased listings, decreasing interest rates, lack of buyer urgency, and caution amongst buyers influenced market sentiment. Local agents are expecting higher listing numbers and a low to average number of sales through winter, with the anticipation that further OCR decreases might lead more buyers to the market. (REINZ)

The current median Days to Sell of 42 days is the same as the 10-year average for May which is 42 days. There were 17 weeks of inventory in May 2025 which is 2 weeks less than the same time last year.

Regional Analysis - Manawatu/Whanganui

The median price for Manawatu/Whanganui decreased by 5.4% year-on-year to $530,000

Owner-occupiers were the most active, with reports of increased first home buyer enquiries. Investor enquiries were still few and far between around the region. Vendor expectations were aligning with current market conditions. However, those who purchased at the market’s peak were struggling with their current property values. Attendance at open homes was good for properties that were new to the market and priced well, but attendance drops away the longer the property is on the market. Little auction activity was reported due to a lack of cash buyers.

The increase in sales, decline in new listings, job security, cost of living and finance approval time influenced market sentiment. Local salespeople predict that the market appears to be in transition, moving away from a buyer’s market, and might continue on this track in the next few months. (REINZ)

The current median Days to Sell of 44 days is the same as the 10-year average for May which is 41 days. There were 19 weeks of inventory in May 2025 which is 5 weeks less than the same time last year.

Regional Analysis - Wellington

Wellington’s median price increased by 1.3% year-on-year to $795,000

First home buyers were the most active buyers across the region, with the decreases in interest rates encouraging more transactions. There were reports of declines in investors due to an overstocked rental market. Most vendors had reasonable price expectations and met current market conditions. Attendance at open homes was slow due to high stock levels. Low attendance was also reported at local auctions. Factors such as the increase in first home buyers and tenants moving from rentals to purchasing properties influenced market sentiment.

Local salespeople suggest that in the next few months, there will be more investors choosing to sell properties and an increase in first home buyers jumping on lower property prices and the decreasing interest rates. (REINZ)

The current median Days to Sell of 50 days is more than the 10-year average for May of 41 days. There were 15 weeks of inventory in May 2025 which is 1 week more than the same time last year.

Regional Analysis - Nelson/Tasman/Marlborough

The median price for Nelson increased by 2.2% year-on-year to $685,000. The median price for Marlborough decreased by 5.1% year-onyear to $650,000. The median price for Tasman increased by 1.3% year-on-year to $790,000.

First home buyers continue to be the most active, with out-oftown buyers still showing their interest, and reports of declining numbers in buyers looking in the $1 million or more price bracket. There were mixed vendor expectations as some seem knowledgeable on current market conditions, while others who purchased at the height of the market have higher expectations. Attendance at open homes increased in the last few weeks of May, and auction room activity continues to improve, with local agents attributing this to a rise in pre-auction offers.

Interest rates continued to have an impact on market sentiment, especially for properties at the lower end. Looking ahead, local salespeople expect the market to remain steady, with cautious optimism as we move through the year. They also stated the grape harvest is yet to make a full impact, but its impact may be prevalent over time. (REINZ)

The current median Days to Sell of 44 days is more than the 10-year average for May which is 40 days. There were 20 weeks of inventory in May 2025 which is 1 week less than the same time last year.

Regional Analysis - West Coast

West Coast’s median price increased by 6.2% year-on-year to $430,000

Owner-occupiers were the most active buyers, with increased interest from first home buyers. Vendor expectations regarding price were met, with most choosing to list their properties within the appraisal range. Attendance at open homes remained low due to a lack of buyers in the region. Market sentiment was influenced by buyers’ lack of urgency, vendors’ concerns around time on the market, and current interest rates.

Local salespeople cautiously predict the market will remain steady and relatively regular during the winter months, with the hope that a drop in interest rates will help first home buyers decide to purchase. (REINZ)

The current median Days to Sell of 48 days is much less than the 10-year average for May which is 65 days. There were 45 weeks of inventory in May 2025 which is 17 weeks more than the same time last year.

Regional Analysis - Canterbury

The median price for Canterbury was the same as in May 2024, at $680,000

Owner-occupiers and first home buyers were the most active buyer groups, with reports of a decline in investor activity and buyers at the higher-end of the market. Most vendor expectations regarding asking price have been realistic, although some still need to adjust to meet current market conditions. Attendance at open homes was varied, but overall good, with increased private viewings for some properties as well. Good attendance was also reported in most auction rooms, reflecting increased engagement and interest.

Factors such as increased optimism, a lack of buyer urgency, and the easing of interest rates have influenced market sentiment. Local salespeople suggest that over the next few months, there will be the usual winter slowdown, then steady, but building into spring. (REINZ)

The current median Days to Sell of 43 days is more than the 10-year average for May which is 39 days. There were 15 weeks of inventory in May 2025 which is the same as the same time last year.

Regional Analysis - Otago

Dunedin’s median price increased by 5.3% year-on-year to $600,000

All buyer types were active this month, although investors remain scarce. Vendor expectations remain unchanged from previous months, still higher than market expectations. Attendance at open homes was above average for new properties, and especially good for affordable first homes. Auction clearance rates saw a slight increase under the hammer, with clearance post-auction relatively high. Market sentiment remained unchanged in May, according to local agents, who report that the market is relatively steady, but cost-of-living challenges persist at high levels.

Local salespeople predict that as winter approaches, new listings may decline further, but if interest rates continue to fall, it will help maintain a steady market. (REINZ)

Queenstown Lakes

First home buyers were the most active buyer group, with no decline in a particular type of buyer reported. Most vendors saw market conditions improving, although this wasn’t immediately apparent, as vendors had the impression that the market was more active than it seemed. Attendance at open homes remained consistently busy, with some homes being busier than others. This suggests that there are still numerous buyers, but most are merely window shopping.

Auction room sales rates remained challenging, as reaching an agreement between both parties required effort and patience. Factors such as the rise in available rental properties and new-build homes, buyers adopting a wait-and-see strategy, a lack of urgency to purchase, and concerns about missing out (FOMO), coupled with cost-of-living challenges, influenced market sentiment. For the upcoming months, local salespeople expect the market will continue to be steady, and with the anticipation of winter visitors arriving soon, they are hopeful this may increase market confidence. (REINZ)

The current median Days to Sell of 49 days is more than the 10-year average for May which is 41 days. There were 20 weeks of inventory in May 2025 which is 4 weeks more than the same time last year.

Regional Analysis - Southland

The median price for Southland increased by 10.0% year-on-year to $495,000

First home buyers were the most active buyer group in Southland, due to the affordability of properties and finance availability. Local agents report a slower market for properties at the higher end, specifically those valued over $1 million. Generally, some vendors were reluctant to adjust their prices, particularly when the Government Valuation (G.V.) supported their expectations. Attendance at open homes was at a reasonable level, particularly for properties priced between $400,000 and $600,000. Auction room attendance typically consisted of one to four potential buyers at each auction.

Buyers still have choices in the current market, making offers on properties where they see value. This influenced market sentiment, putting buyers in a favourable position with lower interest rates, improved affordability, and numerous choices available. This, in turn, is met with a good level of enquiry. Local salespeople predict a slowdown of new listings as we head closer to winter and are hopeful this might generate more interest in what stock is available. (REINZ)

The current median Days to Sell of 41 days is more than the 10-year average for May which is 39 days. There were 14 weeks of inventory in May 2025 which is 3 weeks less than the same time last year.