Lower home values and easing interest rates are creating a rare opportunity for first-home buyers to enter the New Zealand housing market, particularly in hard to access main centres like Wellington and Auckland.

Residential property values have continued their downward trend most parts of Wellington this quarter. The latest QV House Price Index shows the region’s average home value decreased by 0.50% to $837,745 throughout the quarter to April and is 4.11% lower than the same time last year.

Upper Hutt bucked the trend this quarter with average growth of 0.69%. Wellington City (-0.69%), Kapiti Coast (-0.01%), Hutt City (-0.47%) and Porirua (-0.21%) all recorded small average home value losses.

QV senior consultant, David Cornford said, “Stock levels remain at elevated levels and accordingly we have seen a slight overall softening in values in recent months in the region.”

“There is adequate market activity, however the volume of stock on the market is making conditions challenging for vendors in some cases,” he said.

“Buyers have plenty of options currently and are not afraid to walk away from a property. Economic and employment uncertainty continues and we are seeing this reflected in a relatively soft market where buyers are taking a cautious approach.”

Our latest QV House Price Index shows nationwide home values rose 0.10% in the three months to April to a new national average value of $914,504, which is -1.33% lower than the same time last year.

Across New Zealand’s main urban areas: the Auckland region continues to soften, with home values down 2.89% year on year, and 0.08% over the past 3-months; the Wellington region dropped 4.11% year on year, and 0.50% over the quarter to April; Dunedin was down 0.04% year on year and -0.73% over the past three months; while Christchurch bucked the trend, rising 1.35% year on year and 0.88% in the April quarter; as did Hamilton up 0.36% year on year and 0.12% over the past 3-months.

QV Operations Manager James Wilson said while headline values remain soft, early signs suggest a shift in sentiment, with some main urban centres showing a positive monthly trend.

“After five years of significant volatility, the market appears to have stabilised,” he said. “We’re not seeing big swings anymore—home values are holding steady as we head into winter.”

“Although interest rates are trending down, demand is tempered by cautious buyer sentiment and a large supply of properties. Still, signs of a turnaround are emerging, especially in the main centres.”

“For first home buyers, particularly in parts of Auckland where standalone homes are now selling in the $700,000s in some areas—something we didn’t see a year ago—now is the time to act,” said Mr Wilson.

“Investors remain more active than first home buyers, taking advantage of lower competition compared to previous peaks. However, many are still taking a ‘wait and see’ approach.”

Northland

Northland home values have experienced modest recovery momentum rising 1.30% in the three months to April 2025. Whangarei was the top performer in the region with values up 3.19%; value growth in the Far North slowed to just 0.17%; while the Kaipara District was down -2.05% over 3 months, reversing the gains it made earlier in the year.

The annual trend remains negative at -2.79%, but growth signs suggest renewed buyer activity, particularly in Whangarei among investors and first home buyers. The average home value across the region now sits at $731,090, up from $721,626 in January.

Auckland

Across the Auckland region values are down -0.08% over the past three months and 2.89% year on year. The current average value is now $1,244,996.

Manukau (0.53%), Papakura (0.40%) and Franklin (0.81%) all posted 3-month gains, while in the local council areas previously known as Auckland City values softened (-0.28%); North Shore was down the most (-1.19%); Waitakere also dipped (-0.33%); and Rodney (-0.06%) also eased slightly over the same period.

Local QV registered valuer, Hugh Robson said, “Overall, market conditions remain similar to three months ago, we continue to see the strongest demand from first home buyers who are often purchasing more affordable townhouse developments.”

“Annual growth remains in decline at -2.89%, pointing to a patchy recovery across the super city. In areas where supply levels are beginning to be absorbed and owner occupier interest remains stronger, we are starting to see some early positive signals,” he said.

Bay of Plenty

Home values were down in Tauranga -0.23% over the past three months. The city’s average home value $1,014,726, which is -1.48% less than the same time last year.

Meanwhile, the Bay of Plenty region saw values rise slightly by 0.28% over the past 3-months but were down -1.30% year on year. Kawerau values saw the greatest increase, jumping 7.16% over the quarter to April and 1.59% year on year. Western Bay of Plenty district also saw values rise 2.96% over the past three months; Gisborne was also up 2.78%; as was Rotorua up 0.14%; while Opotiki values dropped -2.21%.

Waikato

The latest QV House Price Index shows Hamilton’s average home value is now $792,221, rising 0.12% over the past three months and 0.36% year on year.

Local QV registered valuer Marshall Wu said, “While we are seeing demand levels beginning to return in mid-price brackets where investor and first home buyers competition meet, a significant volume of unsold inventory continues to linger on the market. So, although April’s upturn in Hamilton’s home values is a positive sign, it remains premature to declare a market recovery,” he said.

The Waikato region demonstrated slight improvement in the April quarter with a 3-month gain of 0.60% and 0.03% year on year. The average home value across the region now stands at $817,310. Waitomo District surged 5.41% over the past 3 months, making it the standout performer.

Taranaki

Home values in New Plymouth have risen 1.24% over the past three months and are 1.27% higher than the same time last year. The average home value is now $729,739. Meanwhile, the average home value in South Taranaki dipped 0.64% over the quarter to April to $443,886 while Stratford values also dipped 1.35% over the past three months and the average home there is worth $478,051.

QV property consultant, Danny Grace said “New Plymouth district is more stable with improved levels of activity and interest over the recent months, with more interest from buyers and agents feeling more confident. Stratford and South Taranaki are also stabilising, but not to the same level as New Plymouth. The quarterly gain in New Plymouth of 1.24% shows improved sentiment fueled mostly by the strength of first home buyer demand.”

Hawke’s Bay

Napier City home values rose 0.97% over the past 3 months and were up 0.15% in the year to April. The average value in the city is now $760,444. Hastings values were also up 0.29% over the past three months but were down 2.24% year on year.

The average value in Hastings is now $773,595. Wairoa saw values rise 2.21% in the three months to April and 9.83% year on year to a new average value of $414,919. While it was a different story in the Central Hawke’s Bay District, which saw the greatest decrease down -4.25% over 3 months and -7.02% year on year with an average value of $540,303.

Palmerston North

Home values in Palmerston North dipped 0.68% over the past three months to a new average value of $634,094 which is 1.61% lower than this time last year.

QV registered valuer, Olivia Betts said, “We are currently seeing increased sales activity however prices remain stable. Homes with older, outdated features are struggling to attract buyers and are often listed on the market for longer periods. In contrast, there’s been a growing demand for homes recently renovated, reflecting a preference for modern amenities, according to industry experts.”

Tasman-Nelson-Marlborough

These three regions fared relatively well in April, with Nelson City and Tasman District recording 3-month growth of 1.21% and 2.16%, respectively. Marlborough posted a slight increase of 0.82% over the 3 months to April. The average value in Nelson is now $799,144, Tasman is $829,427, and Marlborough is $703,836.

QV Property Consultant, Craig Russel said “In the Tasman and Nelson markets, demand for homes within the $500,000 to $800,000 price range is still strong, with multiple offers being a common occurrence.”

“Pricing remains a key determinate, with accurate pricing required to avoid properties languishing on the market for an extended period, and with multiple price reductions.”

“Although we have seen modest growth over recent months we are still facing economic headwinds, and with the quieter winter period approaching, it is likely that values will remain flat over the next few months.”

West Coast

Our QV House Price Index for the April brought mixed results for the region with values down 2.60% over the past three months, indicating recent volatility. However, annual growth remains at 1.87% higher than the same time last year.

Average home values in Westland rose 0.27% to $471,390 this quarter. While they decreased by 3.80% to $375,858 in Buller and by 3.55% to $445,433 in Grey.

Canterbury

The Christchurch city average home value rose slightly by 0.88% in the past three months to April to $776,636 and are now 1.35% higher than a year ago.

Meanwhile home values in Hurunui rose 0.76% in the past three months to $645,875 but were down 0.89% year on year. While Waimakariri rose 0.52% over the past quarter to an $721,149 which is 0.47% higher than they were a year ago.

QV registered valuer Olivia Brownie said, “In the three months to April we’ve seen more positive market movement for Christchurch City and the neighbouring districts. We have seen slightly more activity over the previous month which can be attributed to some more affordability and a slight reduction in the cost of borrowing.”

“The market is currently seeing a balance in supply and demand, with buyers having a good range of options and sellers not expecting immediate price increases. Well-presented and located homes are transacting with buyers having the option to leave less appealing stock to the side or negotiating on price. Overall the market movement is minimal and we are seeing a somewhat steady property market.”

Dunedin

Our QV House Price Index for April 2025 shows values dipped slightly in Dunedin City overall by an average of -0.73% over the past quarter, with Dunedin’s average home value now $646,378, which is just 0.04% lower than the same time last year. Dunedin’s central suburbs saw the greatest quarterly increase up 1.40%.

QV Property Consultant Robin Graham said, “Listing levels in Dunedin remain high when compared to the same period last year, with downsizing activity occurring within the owner occupier market. Demand levels remain firm for Mosgiel, followed by Maori Hill and Saint Clair, however agents continue to report that heightened levels of supply, mean vendor price points need to be realistic.”

“Overall property values in the region are flatlining, with only minor growth in isolated areas and softening sentiment in Dunedin among first home buyers and investors when compared to earlier in the year.”

Queenstown

Residential property values are continuing their slight downward trend across the Queenstown Lakes District in this quarter.

Our QV House Price Index for April 2025 shows the average home value reduced by 0.43% over the past three months to $1,818,422. Home values in Queenstown are now -0.45% lower on average than at the same time last year.

Southland

Invercargill values rose 0.21% over the past three months to top half a million with an average value of $501,322, which is 4.01% higher than the same time last year.

While in Gore, values increased 3.15% over the quarter to $418,768 which is 0.22% higher than a year ago. And in Southland values rose were up 1.88% over the past three months to $535,303 which is 6.56% higher than a year ago.

QV registered valuer Andrew Ronald said the region’s affordability and consistent performance underpin buyer interest. We are still experiencing strong demand from first home buyers seeking entry level properties, typically under $500,000.

“Investor activity continues to increase, although not in any significant levels yet. There is still limited demand for upper price bracket properties,” he said.