Source: Cotality (Formerly CoreLogic)
Property sales activity in New Zealand continued to strengthen in May, with volumes holding above average levels for a third consecutive month, according to Cotality’s June Housing Chart Pack.
Sales volumes in May, measured across both private deals and real estate agents, were 16% higher than in the same month last year. This is the 24th rise in the past 25 months.
The total number of sales at 8,218, was also about 5% above the 10-year May average, marking the third month in a row where activity has exceeded ‘normal’ levels.
Cotality Chief Property Economist Kelvin Davidson said the ongoing lift in sale volumes points to improving confidence in the market.
“Property sales have been gradually trending upwards for around two years now, and activity is back at normal levels, or even slightly above. It’s not a boom, but it’s clear that confidence is slowly returning, undoubtedly supported by falling mortgage rates.”
However, for-sale listings remain high, with the number of new listings coming forward in recent weeks still ticking over at a solid pace.
“New listings have generally tracked in line with typical seasonal patterns this year, though April’s extended holiday break did cause a temporary dip. As the market now enters the traditional winter lull, listing activity is likely to remain muted until it picks up again in Spring,” he said.
Mr Davidson noted that stronger sales volumes have started to slightly reduce total stock levels in recent weeks.
“While it has started to come down, the total number of properties listed on the market is still 20% above the five-year average, and that’s putting a lot of the negotiating power in buyers’ hands.”
“Most areas are now showing a decline in total properties listed for sale compared to the same time in 2024, although Canterbury and Otago haven’t quite joined the club just yet,” he said.
Total listings, change from equivalent period last year
“While we’re starting to see listings come down, they’re still well above average in many markets. That means price growth is likely to remain contained in the short term,” he concluded.
Highlights from the June 2025 Housing Chart Pack include:
New Zealand’s residential real estate market is worth a combined $1.64 trillion.
The CoreLogic Home Value Index shows property values across New Zealand edged down -0.1% in May. Over the three months to May, there was also a -0.1% dip in median property values across NZ.
The total sales count over the 12 months to May is 85,395.
Total listings on the market were 29,443 in May. The total number of properties listed on the market remains elevated, although the seasonal fall for new listings flows means that agreed sales have just started to eat into stock levels a little in the past few weeks.
The pace of rental growth remains subdued, with net migration having fallen a long way from its peak, and the stock of available rental listings on the market still elevated.
Gross rental yields now stand at 3.8%, which is the highest level since 2015-16.
Inflation is back in the 1–3% target range, and after May’s 0.25% cut, the OCR is now down to 3.25%.
The Chart of the Month shows Reserve Bank figures, with the average rate being paid on the existing stock of fixed loans currently about 5.9%, but prevailing rates are now about 1%-point lower than that figure.
For more property news and insights, visit www.corelogic.co.nz/news-research
