New Zealand Home Prices Rise Despite Lower Sales

🏡 New Zealand Home Prices Rise Despite Lower Sales — What’s Happening?

In November 2025, New Zealand’s housing market delivered an interesting combination of trends: median house prices continued to rise, even as the number of homes sold slipped. For many observers, this may seem counter-intuitive — but the story beneath the headlines reveals a market that’s stabilizing rather than cooling off.

📊 Latest Market Numbers

According to the Real Estate Institute of New Zealand (REINZ):

📈 Seasonally adjusted median house prices rose by 1.2% in November compared to October.
📅 On a year-on-year basis, prices were about 2.3% higher than November 2024.
🏠 Meanwhile, national home sales fell 4.6% from October and were down 5.7% compared with last year.

This means fewer homes changed hands, yet prices kept climbing — a sign that demand remains firm even if buyers are more cautious.

🧠 Why Are Prices Rising Even as Sales Slow?

1. Underlying Demand Is Stable

Price strength in the face of slower activity points to consistent underlying demand — especially from first-home buyers and owner-occupiers. Market participants have noted that buyers are “taking their time,” rather than abandoning the market entirely.

Essentially, while potential buyers may be pacing their decisions more carefully, many still want to buy. That sustained interest supports house prices.

2. Seasonality & Buyer Behavior Shift

The fact that New Zealand saw fewer sales in November — only the sixth time in 33 years that November sales dropped from October — underlines how unusual this trend is in its normal seasonal cycle.

Multiple factors influence this:

Buyers may be waiting for year-end sales conditions or better financing terms.
Some regions saw strong price and sales performances, while others softened — creating a patchwork market rather than a uniform trend.

3. Listings & Inventory Have Shifted

With new listings up more than 10% year-on-year, buyers now have more options — but sellers aren’t always accepting lower prices.

Higher inventory can slow sales speed and give buyers more negotiating power, yet prices can remain stable if demand roughly matches available supply.

4. Regional Differences Matter

Not all areas are moving in lockstep:

Some regions — like Northland and Hawke’s Bay — saw month-on-month sales increases, while others dipped.
Other local data (e.g., from property listing platforms) show that asking prices cooled regionally, even though the overall national trend is upwards.

This means the national median reflects a blend of stronger and weaker local conditions.

📉 Slower Sales Do Not Mean Weak Demand

It’s important to distinguish between volumes of sales and price movement. A drop in transactions doesn’t automatically imply a drop in demand — it can reflect:

Buyers being more selective
Extended decision timelines
Seasonal patterns
Supply and pricing mismatches

All of these contribute to slower activity without undermining price support.

🧩 Broader Market Context

New Zealand’s housing market has experienced broad swings in recent years, ranging from a prolonged boom pre-2022 to price stabilization and modest growth more recently. External factors like borrowing costs, demographics, and migration flows play an ongoing role.

Moreover, central bank policies — with interest rates expected to remain relatively low next year — could continue to influence buyer sentiment and affordability.

💭 What It All Means for Buyers & Sellers

For Buyers:

A stable price environment with ample listings means more choice and time to negotiate.
Slower sales could signal that buyers don’t feel rushed — but underlying demand still exists.

For Sellers:

Price resilience suggests that homes can fetch good values, especially in attractive locations.
However, expectations need to align with buyer sentiment — increasingly realistic pricing may be key.

For Investors:

A market where prices grow even as volumes slow could indicate continued confidence in real estate as a store of value — though regional nuances matter.

🔍 In Summary

New Zealand’s housing market in late 2025 is best described not as overheated, but as stable and resilient:

Prices are rising modestly.
Sales volumes are easing.
Underlying demand remains healthy.

Rather than a dramatic upswing or downturn, we’re seeing a balanced, selective market — one where timing, location, and buyer behavior all shape outcomes.

New Zealand Home Prices Rise Despite Lower Sales — What’s Happening?