Days to sell hit near-record highs as buyers adopt wait-and-see approach
Auckland investors are increasingly sitting on the sidelines ahead of November's general election, according to REINZ's latest data, part of a broader slowdown in New Zealand's property market even as prices hold largely steady.
Sales slow to a crawl as buyers take their time
In Auckland, where the median price fell 3.6% to $940,000, REINZ's regional commentary noted a clear divide between buyer groups.
"First-home buyers, upsizers, and developers were active during July. Investors were less active, possibly due to a 'wait and see' approach ahead of the November election," according to REINZ.
That caution reflects a wider national trend. The national median price came in at $760,000, down 0.7% on July last year, while sales fell 10% to 6,090. Properties also took longer to sell, with the national median Days to Sell hitting 50, up two days year-on-year and the fifth-slowest July since records began in 1992. The mix of sales shifted lower too, with properties selling for $1 million or more accounting for 24.7% of transactions, down from 26.3% a year earlier, while sales under $500,000 grew slightly to 15.6% of the market.
REINZ chief executive Lizzy Ryley (pictured) said the slowdown reflected a shift in pace rather than a drop in activity.
"There is still activity in the market with people buying and selling property every day. What has changed is the pace. Buyers are taking time to carefully consider their options, and sellers are sometimes allowing more time for the right buyer to come along," Ryley said.
South Island extends its lead over the north
The performance gap between the islands widened further in July. Southland recorded the strongest annual House Price Index growth nationally at 6%, ahead of Otago on 4.9% and Canterbury on 4%, while Otago's index hit a new record high, 1.1% above the previous peak set in March 2026. The scale of the North-South divide shows up starkly against 2021 peak values: Auckland's HPI sits 25% below its peak and Wellington's 29.2% below.
REINZ's Queenstown Lakes commentary, where the median price rose 9.2% on the month to $1.61 million, pointed to steady underlying demand.
"First-home buyers and owner-occupiers remained most active. Vendor pricing generally reflected current market conditions, although occasional differences between buyer and seller expectations meant a few negotiations did not proceed..." REINZ said.
Ryley said broader economic conditions were shaping how those regional differences played out.
"Interest rates, inflation and the election affect everyone, but local employment and regional economic strengths can make a significant difference to how those pressures are felt," she said.
Labour market data released in August reinforced the pattern, with unemployment sitting at 6% in the North Island compared with 3.7% in the South Island.
Rates and cost pressures add to the mix
REINZ members reported growing caution ahead of the election, alongside the Reserve Bank's July OCR increase and ongoing cost-of-living pressures. West Coast and Gisborne were the standout performers nationally, with median prices up 14.7% and 9.6% respectively, while 13 of the 16 regions recorded fewer sales year-on-year.
Ryley said no single factor was driving buyer and seller behaviour.
"Our members are telling us they're seeing less urgency around some property decisions as the election gets closer, with some buyers or sellers opting to wait and see how conditions develop," Ryley said.
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