New Zealand Sales Drop 13% as Regional Price Split Widens
August sales fell to 5,430 units. Southland prices rose 7.4% while the North Island declined.
New Zealand home sales fell 13.0% year-on-year in August to 5,430. This is the sixth-lowest figure for August in 35 years of records. The national median sale price was $750,000, down 1.3% from the previous year.
A sharp divide emerged between the North and South Islands. Every South Island region saw price increases over three months. Seven of eight North Island regions recorded declines. Southland led the country with median price growth of 7.4% to $505,000.
South Island Outperforms North
Tasman followed Southland with a 5.6% rise to $830,000. Canterbury and Otago were the only other regions with annual growth above 1%. REINZ chief executive Lizzy Ryley cited local employment conditions as the driver. Stock levels and buyer demand shape these individual markets differently.
ASB forecasts no nationwide house price growth in 2026. The bank expects only a gradual recovery through 2027. This suggests the South Island’s current outperformance will continue. It stands out against a broadly flat national trend.
Transaction Pace Slows Nationally
Properties took a median of 51 days to sell in August. This is three days longer than a year earlier. Ryley noted that headline stability disguises a complex market. The change is in pace, with fewer sales and longer selling times.
Fixed mortgage rates rose in August. Banks repriced following July’s wholesale swap movements. The Reserve Bank of New Zealand lifted the official cash rate to 2.75% on September 2. This was its second consecutive hike.
Inventory Dynamics Shift Across Regions
New listings fell 5.1% year-on-year to 8,326. National inventory climbed 9.7% to 32,908. This reflects properties taking longer to clear rather than new stock. Southland was the only region with an annual inventory decline.
Ryley stated that stock levels differentiate markets. Areas with many options see buyers taking more time. Regions with fewer listings see competition maintaining momentum. GN auto markets/housing data confirms this regional split. Client conversations now depend on local market knowledge.
