Realestate.co.nz had more properties listed for sale in May than any May in 12 years, with asking prices falling for the third month in a row. Auckland alone has an 18-year high of available stock, shifting the negotiating edge further toward buyers.
The New Zealand housing market entered winter with more properties on the market than at any point in May for over a decade, and sellers are having to adjust their expectations on price.
Realestate.co.nz recorded 36,130 residential properties listed for sale at the end of May — up 5 percent on the same month last year and the highest May total since 2014. Auckland accounted for 14,261 of those, an 18-year high for the city in a single month.
Alongside the surge in supply, asking prices have fallen for three consecutive months. The national average asking price dropped to $850,434 in May, down $48,243 — or 5.4 percent — from February. Auckland's average asking price fell even more sharply: to $1,012,963, down $84,780 or 7.7 percent from February.
The pattern reflects a market that has shifted decisively in favour of buyers. More choice means less urgency, and vendors who need to sell are finding they cannot hold their price expectations at previous levels. That is showing up in both the falling asking prices and the higher volume of new listings — 9,521 new residential listings came onto Realestate.co.nz in May, the highest May figure since 2018.
Stock levels were up year-on-year in most regions, with only West Coast, Southland, Central Otago/Lakes, and Canterbury recording lower supply than the prior year. The seasonal pattern would typically see stock ease slightly over winter before rising again in the spring selling season — but the existing pipeline suggests buyers will continue to have broad choice for some months yet.
For prospective buyers, the combination of high inventory and softening prices creates a window where negotiating power is higher than it has been in recent years — a contrast to the tight conditions of recent years where low stock limited buyer options. The same conditions have pushed more people into seven-figure mortgages, as larger loans became more common to afford properties in major centres. However, for vendors who bought at the higher prices of recent years, the current environment means absorbing a meaningful reduction in expected sale proceeds compared to where the market was 12 months ago.
This article uses Realestate.co.nz data as reported by interest.co.nz.
This article is for general information only and is not personalised financial advice. Seek advice from a licensed financial adviser (registered on the FSPR) for guidance specific to your situation.