“At the same time, sellers generally aren’t under significant pressure. Labour market conditions have softened, but widespread job losses haven’t emerged, allowing many vendors to remain patient and hold relatively firm on pricing.”
Davidson said the result is a market where sales activity has gradually slowed through 2026 and property values have continued to drift lower.
“Most of the heavy price correction occurred in 2022 and 2023, but conditions have remained subdued since then,” he said.
“Adding to the uncertainty are global geopolitical tensions, the Reserve Bank’s move towards a neutral cash-rate setting and the lead-up to November’s general election, particularly for investors facing questions about future tax policy.”
On an annual basis, median property values in Auckland fell 2.6% to $1,022,687.
“The buyer-friendly conditions in Auckland’s residential property market remained firmly in place in August. Affordability has improved and the continued pipeline of new housing supply suggests it could stay that way for some time yet,” Davidson said.
“The Super City also seems to be lacking a bit of economic confidence right now, which will be weighing on housing activity and prices. While this won’t be welcomed by existing property owners or vendors, it’s good news for first-home buyers, who remain active across Auckland.”
In Wellington, property values dropped 2.7% compared with last year to $751,281.
Values rose 3.7% in Christchurch compared with last year to $706,203.
Davidson said the housing market remains in a “holding pattern”.
“With housing now more in reach for a wider range of people – witness the recent strength of first-home buyer activity – the risks of further significant falls in prices have lessened,” he said.
“But until the labour market and job security improve more emphatically, which may not be until we’re well into 2027, consistent growth in house prices seems a low probability.”