“This assessment of a more stable market is reinforced by less negative trends for house prices and the stock of properties,” he said.
However, the Iran war had led to significant increases in petrol prices and wholesale interest rates.
“If higher fuel prices continue for any sustained period, they will undermine New Zealand’s economic recovery and hit consumer confidence,” he said.
“In tandem with upward pressure on mortgage rates, international events could weaken housing market demand in coming weeks and lead to renewed downward pressure on house sales and prices.”
On an annual basis, the HPI indicated the housing market value nationwide had no movement year-on-year, REINZ said.
In Auckland, the value decreased 1.1% year-on-year, while the HPI value increased by 0.7% outside Auckland.
Southland retained the top spot for HPI percentage changes over the 12 months ending February 2026. Prices for Invercargill city were up 6.6% in a year.
Canterbury and Bay of Plenty came second and third, respectively, for annual percentage movement.
Christchurch and Tauranga rose 3.9% and 2.9% respectively, across the year.
Kiernan noted prices were still lower than a year ago across much of the North Island, including falls of 3.6% in Gisborne and 2.9% in Wellington.
Tasman was the only South Island region showing an annual price fall.
Sales volumes recovered much of the ground lost in January, rebounding 6.6% (based on Infometrics seasonal adjustment).
Sales numbers were marginally higher than in February 2025, up 0.3%.
ANZ economist Matthew Galt noted the monthly increase was markedly stronger than the recent trend.
House prices had been declining at an average pace of 0.1% per month, over the past six months, he said.
“However, we are doubtful that this represents a shift in the underlying direction in the market. Other indicators of housing demand are not showing the same strength, including sales volumes (which remain a touch below their long-run average) and days to sell (which lengthened further in February).”
He also noted the February data referred to the period before the conflict in the Middle East broke out.
“Nervousness about how the conflict could impact the economy here will add to the sense of caution among buyers in the coming months.”
Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.
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