The housing market ignored normally positive influences such as improved affordability, lower mortgage rates and a gradually strengthening economy, starting 2026 in a "subdued fashion," according to property data company Cotality.
"National median values fell a modest 0.3% over the three months to January, taking values to 17.5% below the 2022 peak," Cotality said in its latest Housing Chart Pack report.
"Auckland and Wellington continued to underperform, while markets such as Dunedin and Invercargill were more resilient in January," the report said.
Cotality NZ Chief Property Economist Kelvin Davidson said the flat performance in property values may disappoint some vendors, but it offered improved opportunities for buyers.
Property sales volumes were also softer in January, with sales transacted both privately and through real estate agents down 10.7% compared to January last year.
The rental property market was also undergoing a downward reset.
"The rental market has softened as net migration has fallen sharply and the number of properties available to rent remains elevated," Cotality said in its commentary.
"With rents already stretched relative to incomes and wage growth easing, there is limited scope for further increases and the recent falls [in rents], while rare, reflect a reset after a period of very strong growth," Davidson said.
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