NZ Property Market Update 3 July 26 | House Prices Slip, Mortgage Rates Split

The NZ property market spent the week doing plenty of warm-ups but not much scoring. Prices softened, buyers kept the upper hand, and banks shuffled mortgage rates in both directions.

TLDR; by Luminate | 3 July 2026

House prices remain soft

Cotality reported a 0.2% fall in national house values in June, leaving values down 0.9% year-on-year.
Auckland and Wellington recorded further declines, while Hamilton, Christchurch and Dunedin posted small gains. Overall, the market remains patchy rather than showing any clear nationwide recovery.

Buyers still have the advantage

Property listings reached their highest June level since 2014, giving buyers plenty of choice and more room to negotiate.

Average asking prices also fell for a fourth consecutive month, suggesting some sellers are adjusting their expectations to meet the market.

Mortgage rates send mixed signals

Kiwibank and ASB increased some shorter fixed mortgage rates while cutting selected longer terms.

The changes show banks are still weighing near-term inflation risks against expectations that longer-term borrowing costs may ease. For borrowers, it means choosing a fixed term is becoming less straightforward.

Construction activity improves

New-home consents were up 19% annually, pointing to a stronger pipeline of residential construction.

That is positive for future housing supply, although monthly consent numbers remain uneven and the construction sector is still facing cost pressures.

Economic confidence lifts

Business confidence improved sharply this week, while inflation expectations eased.

However, reported business activity remained weak, suggesting confidence is recovering faster than the wider economy.

That's the TLDR this week

For now, the market still belongs to patient buyers rather than hopeful sellers. There is plenty of stock, limited price pressure and more negotiating power than sellers enjoyed a few years ago.

Next week’s OCR decision could finally tell us whether mortgage rates are ready to move, or whether the market will keep passing the ball sideways.