New Zealand home prices dip in August, buyers remain cautious

[SYDNEY] New Zealand home prices edged lower in August, the Real Estate Institute of New Zealand (REINZ) said on Tuesday (Sep 16), as prospective buyers remained cautious despite aggressive interest rate cuts from the central bank to spur the economy.

Seasonally adjusted median house prices dipped 1.3 per cent from July, and were 0.5 per cent lower on the previous year, REINZ data showed.

Seasonally adjusted national home sales fell 4.5 per cent from July, but were up 0.6 per cent from August 2024.

“Across New Zealand, confidence in the property market is tempered with caution,” REINZ chief executive Lizzy Ryley said.

“While many expected the recent (official cash rate) change to encourage more activity, the history of REINZ data suggests that we may be cautiously optimistic that we will see an increase in activity in the market in the coming months.”

The Reserve Bank of New Zealand has slashed interest rates by 250 basis points since mid-2024 to revive an economy that went into recession last year, and has also signalled more cuts by year-end.