Mortgage Basics
Opinion
TLDR
In the spirit of Pink Shirt Day, we’ll say this gently: the housing market has cooled again.
Prices are softer, sales are slower, and buyers are looking, but not exactly sprinting. In fact, the market has gone full winter mode, with the kind of urgency usually reserved for getting out of bed on a cold Kiwi morning.
It is not frozen, but it is definitely reaching for the heat pump.
Sales down in April
Fresh April data shows softer prices, fewer sales and buyers taking their time. REINZ reported national sales were down 21.2% from March, while Auckland was especially soft, with sales down 29.5% month-on-month.
QV also called the market a “holding pattern”, with house values barely moving in April. In other words, not falling off a cliff, but not exactly firing either.
Overseas eyes on 5 million plus properties
There are still a few bright spots. Trade Me Property’s latest data shows international interest in $5m-plus NZ homes remains strong, with search growth up across Auckland, Wellington, Canterbury, Bay of Plenty and Otago.
Mortgage rates were quiet this week
Interest.co.nz reported no mortgage rate changes on Monday, Wednesday and Thursday. However, Westpac’s latest economic outlook warned higher fuel and living costs could weigh on disposable income, weaken the housing market and push inflation higher, with Westpac expecting the OCR to rise towards 3% in 2026 if those pressures persist.
Impacts from the Government budget
The other thing to watch is the upcoming Government Budget on 28 May. The Prime Minister has already signalled there will be no “lolly scramble”, with Reuters reporting a tighter operating package and more focus on capital investment.
For housing, the question is whether Budget 2026 changes the settings. Not necessarily through big giveaways, but through things like targeted benefit changes, income support thresholds, infrastructure funding, or incentives that could affect councils, developers and households. The Government has already announced moves to better target financial assistance, while Local Government NZ is pushing for settings that make it easier for councils to support more housing.
That’s the TLDR this week.
So, no lolly scramble, no runaway property boom, and no need to panic. This is simply a market where the numbers matter more than the vibes. For buyers, that means getting clear on what you can borrow, what you can repay, and what still feels comfortable if things shift.
Disclaimer: This article is general market commentary only and is not financial advice. Property markets, lending criteria, and interest rates can change quickly, so always do your own research and seek advice based on your own circumstances before making financial decisions.
