New data from realestate.co.nz shows that signs of life are emerging in Aotearoa’s property market as we enter the second quarter of 2025.

 In March, new listings were up nationally, month-on-month and year-on-year, and total stock was up in all but one region, indicators that realestate.co.nz said showed seller confidence was back across the motu. Sales volumes were also up in February with 6,287 properties sold nationally - a 3.4% increase compared to the same month last year.

While average asking prices were down year-on-year across most regions in March, declines were generally modest, indicative of a relatively stable market. Properties sold slightly faster during March, with properties spending less time listed.

Realestate.co.nz spokesperson Vanessa Williams said that while there was no sharp market upswing, there were signs of quiet momentum as 2025 progressed. The national average asking price remained relatively stable in March, moving up just 0.8% month-on-month but still down 2.6% compared to March last year. Stock remained at decade-high levels and vendors were busy in March, Vanessa said.

“Nationally, new listings rose 5.0% year-on-year, reaching 12,029 – another signal of growing seller confidence. Thirteen of our 19 regions recorded year-on-year increases, with Gisborne seeing the largest percentage jump, up 23.8% compared to March 2024,” she added.

Affordability improves – CoreLogic

Meanwhile, Kiwi housing affordability has improved to its best level since 2019 with lower property values, rising incomes, and lower mortgage rates making it easier for buyers to enter the market, according to the latest CoreLogic NZ Housing Affordability Report.

CoreLogic NZ Chief Property Economist Kelvin Davidson said New Zealand’s median home value of $804,366 as at December 2024 was 7.3 times the median annual household income ($109,975), marking a significant improvement from 10.1 at the market peak in late 2021.

Mortgage repayments had also become more manageable, with households spending 46% of their income on servicing an 80% LVR mortgage, down from 56% at the worst point in 2022, but still above the long-term average of 42%.

Saving for a 20% deposit currently takes 9.8 years on average, an improvement from 13.5 years in 2021, but this still exceeds the long-term average of nine years. While first-home buyers (FHB) faced this deposit hurdle, many were overcoming it, with the percentage share of FHB purchases holding up at or around record highs. FHB access to KiwiSaver for part of a purchase deposit had helped this significant segment, as had tapping into the low-deposit lending allowances offered by banks. 

Kelvin Davidson said Auckland and Wellington had seen some of the strongest improvements in affordability and were close to their long-term averages. Despite a median property value of almost $1.1 million, Auckland’s value-to-income ratio was 7.9, its lowest level in a decade, while its years to save a deposit figure of 10.5 is a multi-year low. Wellington City too has returned to pre-2017 affordability levels with a value-to-income ratio of 6.5, Kelvin added.

Whether you want to buy, sell or rent a property, don’t hesitate to contact your local Raine & Horne office.