House prices are showing “additional signs of stability” with a small average month-on-month rise last month, according to the Real Estate Institute (REINZ).
In September, the group’s data suggests national median price decreased 2.3% year-on-year, from $799,000 to $781,000, and increased 2.1% month-on-month from $765,000.
For all regions, excluding Auckland, the median price decreased slightly by 0.7% year-on-year (only by around $5000), from $700,000 to $695,000. Meanwhile, the median price increased by 2.2% compared to August 2024, up from $680,000.
It follows the Reserve Bank’s decision in August to cut the official cash rate for the first time in years, signalling a loosening of the squeeze on borrowers.
REINZ chief executive Jen Baird said she believed many in the market were expecting a “gradual recovery” of the housing market over the next 12 months.
“After the Reserve Bank reduced the OCR rate by 50 basis points to 4.75%, the market is expected to see more activity from those who are ready to buy, reinforcing the optimism in the market, and this will likely be reflected in the coming months’ property reports,” she said today in a media release.
“The signs across the country are largely of stability with slight decreases year-on-year, and the median price increase of 2.1% compared to August a slight improvement.
“Even though we are seeing another year-on-year decrease, this is in line with what we expect this time of year so the market is doing what we would expect, another sign of stability.”
Some regions have median price growth in the past year
Eight of the 16 regions experienced median price growth in the past year, according to REINZ.
Gisborne had the highest increase at 10.1% to $605,500, followed by the West Coast at 9.9% to $390,000.
Median prices also increased in 12 regions month-on-month, with significant changes in Southland (14.1% to $487,000) and Marlborough (9.7% to $680,000).
Baird added: “Local salespeople around the country have noted an increase in buyers attending open homes, more so than the usual spring lift we see each year.
“With some regions now seeing an uplift in sales (seven out of 16 regions), buyer engagement is improving, with listings receiving more enquiries.
“These trends could lead to a more robust market in the coming months, particularly if expected improvements in market activity and reductions in interest rates eventuate.”