New Zealand Housing Market: Prices & Sales Dip in January 2024

New Zealand’s housing market experienced a slowdown in January, with both sales volumes and prices declining, according to data released by the Real Estate Institute of New Zealand (REINZ) and analyzed by Westpac Institutional Bank. The softening market follows a period of relative stagnation in late 2025, with November seeing a drop in sales and a slight decrease in prices.

Westpac’s analysis, published February 16, 2026, highlights a divergence in price trends between rural and urban regions. While the overall market is soft, the extent of the decline varies geographically. Michael Gordon, Senior Economist at Westpac NZ, authored the report.

REINZ data from November 2025, as reported by MPA Magazine, indicated a 2.3% year-on-year increase in the national median price to $808,000. Excluding Auckland, the median price rose by 4.3% to $730,000. However, the January 2026 figures suggest this upward trend has stalled.

A LinkedIn post from the Westpac NZ Economics Team in November 2025 noted that the market “hit an air pocket” with sales falling and prices “nudging down.” Errol Fonseca, commenting on the post, suggested that market recovery hinges on banks passing on Official Cash Rate (OCR) relief, and that any recovery would initially manifest in increased sales volume rather than price increases. He further stated that quality properties would continue to sell, while overpriced homes would likely remain on the market.

The Westpac report indicates that the current market conditions are influenced by buyer hesitancy and a lack of confidence. The report does not specify the extent of the January decline, but confirms the continuation of the trend identified in November.

Westpac Institutional Bank defines its New Zealand operations as being provided by either Westpac (NZ division) or Westpac New Zealand Limited, a subsidiary of Westpac.