May housing report reveals a market in motion
Sales volumes in New Zealand’s housing market rose 4% in April 2025, according to Cotality’s May 2025 NZ Housing Chart Pack, continuing nearly two years of consistent growth.
Property values also nudged up 0.9% over the latest quarter. While the national average remains 2.0% lower than this time last year - and still 15.6% below the 2021 peak - there are clear signs of recovery, particularly in regions that had previously been hit hardest.
Some centres are already showing more stability. Christchurch has only dipped 4.4% from its peak, while Wellington is beginning to find its footing after a much steeper correction. Buyers are re-engaging, and listings remain plentiful. It’s not a ‘fast-paced’ market, but the trend is edging upward.
Reading between the lines, and the locations
This kind of environment presents opportunities for investors with a long-term view - especially those prepared to look beyond the main urban centres. When considering strategy, Loan Market Coast to Coast mortgage adviser Brendan Brits has already seen what can happen when clients act early in the right areas.
“I work with a really dynamic investor group that looks for opportunities in changing markets, and they will pick trends in property evolution based on the overall economy around an area,” Brits told NZ Adviser.
“We were finding properties in areas like Whanganui and Gisborne when the prices were $120-160k, and in the last five years, that’s grown to $500-600k. In a downturning environment, there’s always an opportunity if you’re willing to do the work. A lot of people have reacted to that and looked for opportunities in niche markets.”
The data backs that up. According to the May 2025 Housing Chart Pack, smaller centres like Gisborne and Palmerston North have recorded strong long-term value gains, even if prices have come down slightly from their peaks. These markets were once considered secondary, but they’ve delivered major returns for those who got in early.
While investor activity overall is still below historical levels, these niche strategies are exactly where many are now focusing their attention.
Big shifts among first buyers
First home buyers are also holding their ground. As of March, 44% of them had entered the market with deposits under 20%, and they accounted for 78% of all high-LVR owner-occupier lending. Their share of total purchases sits around 27%, a figure that has remained resilient despite lending restrictions and price pressures.
While prices are slowly creeping up, rates - including major bank test rates - are coming down, and Brits points out that there’s more help available than people might expect.
“For buyers, all you have to do is Google ‘first steps for a first home buyer’ and there are 15+ pages right out of the gate with really well resourced information from the mortgage broking industry,” he explained. “A lot of great advisers have put some really tremendous literature together to help people on their property journey, and it’s easier than people think.”
This kind of accessibility is important as more buyers return to the market. According to the Housing Chart Pack, total listings as of April are sitting well above the five-year average, creating a more balanced playing field and giving advisers more room to guide their clients through the process without the pressure of bidding wars or supply crunches.
But a more balanced market doesn’t mean it’s easier for advisers. If anything, it demands even more strategic thinking and discipline behind the scenes.
“Being an adviser requires a tremendous amount of energy and a relentless pursuit to execute on a business,” Brits commented.
“Take every opportunity you get to go out, meet all the agents, and speak to everyone you can. It’s about having that consistency and relentless pursuit to grow the business, meet people, and not accepting less.”
