The housing market is looking particularly soft, with sales numbers and prices both falling as it heads into winter.
According to the Real Estate Institute of NZ, 6262 residential properties were sold throughout the country in April, -21.2% compared to March and -7.9% compared to April last year.
The drop in sales was particularly significant in Auckland, where April's sales were -29.5% compared to March and -14.8% compared to April last year.
The REINZ House Price Index (HPI), considered the most reliable indicator of price movements, declined by -1.2% in April compared to March, and was down by -0.9% compared to April last year.
The biggest monthly declines in the HPI were in Auckland and Gisborne, both -2.0%, Otago -1.9% and Wellington -1.6%.
Only three regions posted gains in the HPI in April - Northland +1.4%, Bay of Plenty +0.7% and Southland +1.9%.
See the table below for the full regional HPI movements.
The national median selling price was $775,000 in April, -1.9% compared to March and -0.6% compared to April last year.
The REINZ said buyers remained active in the market but were responding to cost pressures.
"April lands the housing market in a testing mid-cycle position," the REINZ's April report said.
"[It's] past the initial shock of the overseas conflict, into its cost of living pass through and now facing a potential OCR hike environment through winter.
"Fuel costs are amplifying regional differences, particularly in vehicle dependent areas, against a broader backdrop of rising living costs, including food, insurance and rates," it said.
However the report also noted that the main challenge facing the market over winter could be rising mortgage interest rates.
"This shift, from a [rate] cutting environment to an imminent hike environment , removes the tailwind of falling rate expectations that underpinned 2025's recovery, and begins to introduce the prospect of new serviceability pressure, a meaningful change from April's starting position," the report said.
"The key question for May and June is whether listings continue to build faster than sales can absorb them as we move into winter," it said.
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Median price - REINZ
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Volumes sold - REINZ
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