NZ Property Market Update 24 July 26 | Nearly 35,000 homes for sale as rates head higher

Winter might have cooled the property market, but the listings are piling up faster than washing on an Auckland wet weekend. Nearly 35,000 homes are for sale, inflation is back above 4%, and floating rates could be heading towards 7%. Buyers have options. Borrowers, slightly fewer.

House listings keep climbing

Almost 35,000 homes were listed for sale at the end of June, up 7.3% from a year earlier.

Nearly 27,000 properties had remained unsold for more than a month, an increase of 8.3%. With plenty of choice and vendors becoming more realistic, the market has swung further in buyers’ favour. Read more

Inflation reaches 4.1%

Annual inflation rose to 4.1% in the June quarter, above the Reserve Bank’s 1% to 3% target range.

Fuel caused most of the increase, but new-home construction costs also rose 1.6% during the quarter. That keeps the possibility of further OCR increases firmly on the table. Read more

Floating rates could reach 7%

BNZ expects floating mortgage rates to rise above 6.5% by the end of 2026 and potentially reach 7% during the first half of 2027.

It expects house prices to remain broadly flat this year, with possible growth of around 3% next year. Fixed-rate increases are expected to be more limited.

Shared ownership enters the campaign

NZ First is considering a Crown co-investment scheme for first-home buyers. The Government would take a share in the property, reducing the amount buyers need to borrow.

It’s currently an election proposal, with the details still being developed.

Building rules face a rebuild

The Government’s Building Amendment Bill proposes proportionate liability, mandatory warranties for new builds and major renovations over $100,000, and professional indemnity insurance for building designers.

The Bill is now before a select committee.

That's the TLDR for this week.

There are plenty of homes, plenty of policy and plenty for the Reserve Bank to think about. The market may be opening doors for buyers, but getting the lending right will help make sure the numbers don’t close them again.