The housing market remained subdued over the three months to September, with sales activity slowly rising but property values largely stagnant, according to property data company Cotality.

Cotality NZ Chief Property Economist Kelvin Davidson said given the weakness of the economy and labour market, a strong lift in prices was hard to envisage in the near term, though there were some signs of conditions shifting.

“With affordability returning back closer to normal levels, listing volumes starting to decline, mortgage rate falls increasingly passing through to existing borrowers as they reprice onto lower rates, and the unemployment rate set to fall a bit next year, conditions seem to be building for modest house price growth in 2026 –  but don’t expect a boom,” Davidson said.

However, housing values were patchy depending on housing type and locations.

Across the country, 56% of suburbs (that’s 1484 suburbs out of 2661) saw the median value of standalone houses decline over the three months to September. Townhouses and home units posted median value declines in 54% of suburbs, while values were unchanged or up slightly in 44% of suburbs.

The biggest declines of 5% or more were most common in lower priced parts of the North Island, such as Otangarei in Whangarei, Taihape, Inglewood in Taranaki and Paihia in Northland.

However 19 suburbs around the country posted median value gains of 5% or more.

“There’s clearly still patchiness in the market, but this fits with the overall picture that national median values have drifted slightly lower in recent months,” Davidson said.

“Overall, property values remain sluggish for now, but conditions may be turning towards some growth in 2026, albeit slightly muted,” he said.