Vendors hold back as election uncertainty leaves buyers spoilt for choice
Buyers ended October with more homes to choose from than at any October in more than a decade, as sellers stayed on the sidelines in the run-up to the 7 November general election.
National stock rose 11.4% year-on-year to 37,433 properties, a level not seen in October since 2014, according to realestate.co.nz’s New Zealand Property Report. Supply grew fastest in Gisborne, up 31.4%, followed by Taranaki and Marlborough, while Auckland had 15,046 homes for sale, up 14.1%.
New listings fell 4.5% as sellers held off, while the jump in stock suggests buyers were also taking their time.
Vendors play it safe
Sarah Wood (pictured), chief executive of realestate.co.nz, said the slowdown in new listings reflected sellers who could afford to wait.
“With the election just around the corner, it’s not surprising to see some sellers holding off,” she said.
Sellers’ wariness also showed in the method of sale. Auctions made up 22.1% of new listings, down from 26.2% a year earlier and 28.3% in October 2023, which Wood said was the lowest October share in seven years.
“This points to sellers taking a more cautious approach, although ongoing economic challenges and wider global uncertainty are likely playing a part too,” she said.
Listings fell in 11 of 19 regions, with Coromandel and Northland both down more than 15% and Auckland down 7.9%, although Otago bucked the trend with a 13.1% rise.
Prices soften, but four regions hit October highs
The national average asking price eased 2.7% to $840,380. Auckland’s fell 5.2% to $984,527, staying under the $1 million mark for a second month running, while Gisborne and Hawke’s Bay recorded falls of more than 10%.
Several regions moved the other way. Otago’s average asking price climbed 13.2%, and Canterbury, Southland, Marlborough and the Central North Island all set record October highs.
Bank economists expect softness to persist. ASB forecasts house prices to fall 1 to 2% over 2026, citing high living costs, a labour market where unemployment has hit an 11-year high, a weak labour market and pending interest rate rises.
Little change expected overnight
Wood expects some held-back activity to return after the election. hat return may take longer than usual to emerge. Preliminary election results give the centre-right bloc a one-seat majority, but around 400,000 special votes are still to be counted, with official results due on 27 November.
Even so, Wood said that “with stock levels remaining high, we’re unlikely to see a significant shift in market conditions overnight.”
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