PHOTO: The NZ housing market is moving, but only for those willing to accept the new reality.
📉 Asking price remains the ultimate deal-breaker. Despite falling interest rates and rising sales activity, New Zealand’s housing market continues to frustrate vendors clinging to 2021 dreams.
📊 Winter Sales Surprise: Market Still Moving
According to the Real Estate Institute of New Zealand (REINZ), 6,319 residential properties changed hands in July 2025 —
✔️ Up 6% compared to July 2024
✔️ Up a massive 25% compared to July 2023
👉 So while the market is still in the depths of winter, sales activity is ticking along better than expected.
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💰 Selling Prices: Stuck in Neutral
Median selling prices have remained weak but stable:
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Bouncing between $750,000 – $800,000 since December 2022
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Well below the 2021/22 boom peak of $925,000
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The last time prices were this flat? 2007–2010, during the Global Financial Crisis aftermath
Despite falling mortgage rates, buyers aren’t rushing to pay more.
📉 Interest Rates Down, Prices Flat – Why?
Between Nov 2023 – June 2025, the average 2-year fixed mortgage rate fell from 7.04% ➝ 4.96%.
💡 Normally, cheaper borrowing = higher prices.
But this time, unsold stock is flooding the market:
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Listings on Realestate.co.nz rose from 23,090 (Jul 2023) ➝ 30,430 (Jul 2025) 📈 (+32%)
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End-of-month unsold homes: 19,773 ➝ 26,065 (+32%)
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Withdrawn listings: 2,672 ➝ 3,372 (+26%)
🚨 More stock = buyer’s market.
🏠 Vendors vs Reality: Who’s Selling?
🔑 The golden rule: Asking price determines whether a property sells.
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Vendors pricing at 2021 levels? ❌ Sitting unsold.
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Vendors pricing to today’s market? ✅ Finding buyers.
This explains why thousands of homes are being withdrawn each month by frustrated sellers unwilling to meet the market.
🔮 What’s Next for the Housing Market?
Even with further interest rate cuts, one thing is clear:
➡️ Realistically priced properties will sell.
➡️ Overpriced properties will stagnate.
The NZ housing market is moving, but only for those willing to accept the new reality.