There are early signs that the housing market is settling into a more balanced rhythm early in the year, with buyers active but cautious and sellers returning to list.
According to realestate.co.nz, the number of homes listed for sale in January was 2.3% higher than the same month a year earlier. New listings were also up 1.3% year-on-year, suggesting vendors are entering the market with renewed confidence.
Inventory levels sat at 22 weeks in January, below the long-term average of 26 weeks. This indicates that while there is healthy stock available, it is not excessive by historical standards.
At the same time, prices have edged lower. Asking prices were down 0.2% over the month and 1.5% over the year, reflecting a market where buyers are still cautious.
Buyers prepared but taking their time
Realestate.co.nz Spokesperson Vanessa Williams said activity remains solid, even if urgency is limited. “We’re seeing strong listings and solid sales volumes, but buyers are still taking their time. Banks are busy with mortgage pre-approvals, so buyers are getting ready, but they remain cautious,” she said.
Ms Williams suggested some purchasers may be waiting for political or monetary signals before committing. “If they’re waiting for pre-election promises or further [Official Cash Rate] cuts, they could miss out. There’s plenty of stock on the market to choose from, which makes the new year a good time to transact.”
Although prices have softened slightly, confidence has not disappeared. “After a long period of price stability, the market is finding its feet again. What we’re seeing is confidence returning in areas where lifestyle, value and long-term appeal align. Buyer activity is up too – visits to realestate.co.nz are tracking 12.4% higher than this time last year – so for those ready to make a move, the conditions are favourable and there’s good stock at realistic price points,” Ms Williams said.
What this means for buyers and sellers
For buyers, stable prices and ample choice create negotiating opportunities, particularly for those with pre-approved financing. For sellers, realistic pricing remains key, especially in a market where purchasers are comparing options carefully.
Thinking about buying or selling in 2026? Reach out to discuss how current market conditions and lending trends could affect your plans and help you move forward with confidence.
