Tuffley said the overall property market remains sluggish, with Wellington in particular weighed down by weak sentiment and a soft job market. He pointed out that South Island housing markets have held up better than many North Island counterparts.
Auckland’s affordability improves
Auckland climbed five places to fifth on the Scoreboard, helped by stronger retail activity and improving consumer confidence. Tuffley said lower mortgage rates are already making a difference for buyers.
“Auckland is turning around,” Tuffley told NZ Adviser.
“On the plus side we have mortgage rates coming down, which shifts affordability quite a lot. Bank stress test rates are now back below 7%, which is not too far above what they were when mortgage rates were at their lows back in 2020-21. That’s really going to help people’s ability to buy a home in Auckland.”
He added that job growth remains weak and migration is easing from 2023 highs, which will limit population-driven demand. Even so, he expects a gradual lift in sales as borrowing costs fall. Stock levels remain high, so prices are likely to stay flat even if turnover improves.