New Zealand's national asking prices fell 2.5% in May to NZ$833,800 from April, while easing 0.2% year on year, as price expectations dropped and sentiment softened among both buyers and sellers, according to a Trade Me Property survey released on Wednesday.
Regional performance continued to diverge from the national trend, with parts of the South Island and smaller regional markets showing stronger price resilience, while Auckland and Wellington remained under sustained downward pressure.
Expectations for house price growth over the coming year shifted notably, with the share anticipating price increases falling to 29% in May from 46% in March, while those expecting declines nearly tripled, rising to 16% from 6.5%.
Despite weaker expectations, buyer intent improved, with over half of respondents still viewing it as a good time to buy, a 6% rise in those planning a purchase within a year, a slightly larger share of first-home buyers, and a 3% drop in investor activity.
Seller activity is ticking up modestly even as confidence weakens, with more respondents preparing to list in the coming months but fewer viewing the current moment as a favorable time to sell.
Sellers continue to cite pricing as their primary challenge, with "getting the right price" remaining the key concern, highlighting persistent misalignment between buyer and vendor expectations.