Despite the lift in transactions, renewed demand did not trigger a fresh price spike.
House prices steady as buyers gain negotiating power
Nationally, prices remained broadly flat. The median house price edged down just 0.6% year-on-year to $775,000, underlining a stabilising rather than surging market.
Higher stock levels boosted buyer choice, with average inventory up 5.9% from 31,338 properties in 2024 to 33,182 in 2025. This shifted negotiating power toward buyers, who stayed disciplined on affordability and value, and were unwilling to bid aggressively above perceived market levels.
“More sellers decided it was time to list their properties as well, so as buyers returned to the market, they had more choice and more negotiating power overall,” Ryley said. “Vendors who were willing to meet the market attracted strong buyer interest, while those who were slower to adjust experienced longer time on the market before revising their expectations to match market conditions.”
Southland, Otago, and Canterbury outpace the national trend
Regional performance diverged, with more affordable markets leading the way. Southland’s median sale price climbed 6.3% to $489,000, Otago’s rose 2.9% to $700,000, and Canterbury’s increased 2.2% to $700,000 between 2024 and 2025, REINZ reported.