According to Cotality’s June Housing Chart Pack, sales volumes in May were 16 per cent higher than the same month last year, marking the 24th rise in the past 25 months.
The total number of sales reached 8,218, approximately 5 per cent above the 10-year May average.
Cotality Chief Property Economist Kelvin Davidson said the ongoing lift in sale volumes indicates improving market confidence.
“Property sales have been gradually trending upwards for around two years now, and activity is back at normal levels, or even slightly above,” Mr Davidson said.
“It’s not a boom, but it’s clear that confidence is slowly returning, undoubtedly supported by falling mortgage rates.”
Despite the increased sales activity, for-sale listings remain high, with the number of new properties coming to market maintaining a solid pace in recent weeks.
Total property listings are still 20 per cent above the five-year average, although stronger sales have started to slightly reduce overall stock levels.
Most regions are now showing a decline in total properties listed compared to 2024, with Canterbury and Otago being the exceptions.
The latest data reveals an interesting split between property types, with standalone houses showing earlier signs of recovery compared to townhouses and flats, especially in more affordable areas.
“Overall, we’re seeing some green shoots across the board,” Mr Davidson said.
“But standalone houses are perhaps tending to lead the early recovery in terms of both consistency and scale of value gains.”
Across the three months since March, 62 per cent of suburbs recorded flat or rising median values for standalone houses, with 22 per cent experiencing an increase of at least 2 per cent.
Several smaller, affordable suburbs saw house value growth exceeding 5 per cent.
In contrast, the recovery for townhouses and flats has been more restrained, with just 54 per cent of suburbs seeing values hold steady or rise, and only 16 per cent experiencing growth of 2 per cent or more.
The CoreLogic Home Value Index shows property values across New Zealand edged down by just 0.1 per cent in May, indicating the market is stabilising.
Over the three months to May, there was also a 0.1 per cent dip in median property values nationwide.
New Zealand’s residential real estate market is currently valued at a combined $1.64 trillion, with rental yields now standing at 3.8 per cent, the highest level since 2015-16.
The Reserve Bank has begun easing monetary policy, with the Official Cash Rate now at 3.25 per cent following May’s 0.25 per cent cut.
This has contributed to mortgage rates trending downward, with prevailing rates now about 1 percentage point lower than the average rate being paid on existing fixed loans.
“While the market downturn appears to be behind us, the recovery in 2025 is far from uniform,” Mr Davidson said.
“There are plenty of challenges still in play, from weak economic growth to stricter debt-to-income rules.
“But overall, we’re tracking in a cautiously upwards direction.”
