The Real Estate Institute of New Zealand (REINZ) has this month released figures for May 2025, revealing a moderately more active market as the country heads into the winter season.

While the number of sales has increased compared to the same period last year, this growth has been accompanied by a decline in the national median price and a slowdown in the number of new listings coming to the market.

New Zealand’s median price has seen a year-on-year decline of 0.9%, settling at $763,000. When considering New Zealand, excluding Auckland, the median price remained stable across the year at $689,000. Conversely, Auckland experienced a year-on-year decline of 3.5%, resulting in its median price reaching $975,000.

Eight out of the 16 regions have reported an increase in median prices compared to May last year, with Southland leading with a notable 10% increase, rising from $450,000 to $495,000. The most significant year-on-year decline in median price was observed in Manawatū-Whanganui, which decreased by 5.4%, from $560,000 to $530,000.

The Bay of Plenty

The median price for the Bay of Plenty increased by 0.9% year-on-year to $822,000, according to the REINZ May 2025 full Monthly Property Report.

“Owner-occupiers and first-home buyers were the most active, with a noticeable increase in investors re-entering the market,” said the report.

“Most vendors were realistic about pricing their properties. However, others were generally optimistic when first entering the market, hoping to meet market expectations and secure a sale.”

The report said attendance at open homes in the BOP was generally good, increasing throughout the month.

“Auction room activity varied across the region, with attendance also growing, along with higher bidding numbers and stronger clearance rates. However, others saw properties passed in at auction.”

Factors such as buyers’ lack of urgency, increased active buyers, increased positivity and heightened competition in some auction rooms influenced market sentiment.

“Local agents are cautiously hopeful that the market will remain fairly steady during winter and see more activity later in the year.”

Tauranga

For Tauranga City, the median house price for May 2025 went up to $895,000 – up 2.3% – from $875,000 the month before (April 2025), and was 2.1% higher than May 2024’s recorded median house price of $877,000. The sales count in Tauranga was 295 for May 2025, increasing 22.4% from 241 in April 2025, and was up 35.3% from the 218 recorded in May 2024.

Western Bay of Plenty

For the Western Bay of Plenty district, the median house price for May 2025 dropped to $890,000 from the $905,000 figure recorded the month prior in April 2025. But compared to Western Bay of Plenty district’s median house price in May 2024 of $825,000, last month’s figure remined higher.

The sales count in Western BOP was 55 for May 2025, an increase of 25% from 44 in April 2025; and an increase of 14.6%, at 48 sales, recorded for May 2024.

The reported stated the current median Days to Sell in the BOP region of 51 days is more than the 10-year average for May, which is 47 days. “There were 23 weeks of inventory in May 2025 which is two weeks less than the same time last year.”

Interest rates

The May 2025 report stated that the stability in interest rates had encouraged more buyers to enter the market, though levels of confidence varied by region.

“While some areas are experiencing consistent conditions, certain cities are still navigating changes in affordability and demand trends.”

In May 2025, the number of properties sold in New Zealand rose by 8.9% compared to the same month last year, increasing from 6579 to 7166 sales. When excluding Auckland, sales increased by 11.3%, from 4593 to 5114.

Regionally, Northland recorded the highest year-on-year increase, rising 33.3% from 171 to 228 sales. Other regions with notable sales increases included Tasman (+29.7%), Marlborough (+23.1%), and Manawatū-Whanganui (+18.7%).

New Zealand experienced a 2.9% increase in listings in May 2025 compared to the year prior, totalling 9489 listings. “However, when excluding Auckland, there was a slight decline of 0.9% in listings, totalling 5,835. The inventory levels in New Zealand continue to rise, increasing by 5.6% year-on-year to 34,415 properties available for sale.”

Nationally, 875 auction sales were reported, representing 12.2% of all sales. For New Zealand, excluding Auckland, there were 434 auction sales, accounting for 8.5% of the total sales. Additionally, the median number of days to sell properties in New Zealand has increased, rising by three days to 47, while in New Zealand, excluding Auckland, it rose by four days to 47.

The report stated the increase in the median days to sell reflects a market that, while more active in terms of transactions, is also characterised by greater buyer caution.

“Purchasers are taking longer to commit, which local agents suggest could be due to a lack of buyer urgency and the fact that buyers have time to find a property that best suits them.”

The HPI

The House Price Index (HPI) for New Zealand is currently at 3601, showing a year-on-year increase of 0.1% and a decrease of 0.6% compared to April 2025. Across the past five years, the average annual growth rate of New Zealand’s HPI has been 4.2%. Southland remains the highest-ranked region for HPI movement, taking the top place for 11 consecutive months.

For the full Monthly Property Report from REINZ for May 2025, see: www.reinz.co.nz/libraryviewer?ResourceID=772

For the House Price Index (HPI) Report for May 2025, see: www.reinz.co.nz/libraryviewer?ResourceID=770