National property prices fell for a fifth consecutive month in August, as buyers and sellers continued to take a cautious approach to the market.
According to Cotality, the national median price declined 0.4% over the month to $798,000, leaving it 1.0% lower than in August 2025.
Cotality Chief Property Economist Kelvin Davidson said the market was characterised by caution rather than distress. Economic uncertainty, rising mortgage rates and a high number of properties for sale mean buyers have little reason to rush, while most sellers aren’t under significant pressure to accept lower prices.
Against that backdrop, sales activity has gradually slowed during 2026 and property values have continued to drift downwards.
Mr Davidson said global geopolitical tensions, the Reserve Bank of New Zealand’s move towards a neutral cash rate setting and uncertainty ahead of November’s general election were also influencing sentiment.
Overall, he described the housing market as being in a “holding pattern”, with no sign of a sharp downturn but also no obvious catalyst for stronger growth in the near term.
Affordability improves for buyers
National property values are now about 18% below their peak, although they remain approximately 15% higher than in March 2020, at the start of the pandemic.
That decline has helped a range of housing affordability measures return to around their long-term averages – or slightly better – potentially putting property ownership within reach of more people.
However, Mr Davidson cautioned that housing still isn’t cheap and improved affordability doesn’t necessarily mean prices are about to rebound sharply. Rising mortgage rates and a subdued economy remain significant constraints.
First home buyers, in particular, may find opportunities in the current environment, while the approaching election could contribute to continued caution. Historically, sales activity has tended to slow in the months before an election, although Mr Davidson said evidence of elections having a clear impact on property prices was less convincing.
A slower market can give buyers more breathing room, but being finance-ready still matters when the right property appears. Clients who are starting their property search are welcome to speak to us about what they can comfortably afford.
