New Zealand’s housing market continues to show signs of recovery, with national sales activity and dwelling values both lifting in March, supported by easing mortgage rates and renewed buyer confidence, according to CoreLogic NZ’s April Housing Chart Pack.

Sales volumes were 11% higher in March compared to the same time last year, more than offsetting February’s brief dip. This marks nearly two years of gradual growth in transaction activity.

“Clearly confidence levels are growing, no doubt reflecting the falls in mortgage rates,” said ​CoreLogic NZ chief property economist Kelvin Davidson.

“The recovery in property values and activity levels is becoming clearer, but it remains measured.

“Higher stock levels are still giving buyers plenty of choice, which will keep a lid on price growth in the near term.”

National home values edged up 0.5% in March, following a 0.4% increase in February and a flat result in January, based on CoreLogic NZ’s latest Home Value Index.

The recovery is becoming more geographically widespread, extending beyond the main centres into key regional towns and cities.

Investor activity rising

While the supply of available listings continues to track at multi-year highs, reducing the urgency for buyers, improving conditions have nevertheless sparked renewed interest from a range of buyer groups.

First home buyer activity as a share of the market has eased slightly from recent record highs, but investor activity is on the rise, driven by lower mortgage rates, said Davidson.

“Mortgaged investors remain on the comeback trail. Lower interest rates are certainly helping investors by reducing the cashflow top-ups out of other income sources that are generally required on a rental property purchase.​

“While the share of purchases going to mortgaged multiple property owners, including investors, remains below historical levels, this group has certainly started to return. Indeed, at 23% in Quarter One 2025, they’re back to levels not seen since late-2021.”​

Davidson said all buyer groups were expected to be more active through the rest of 2025.

“If current momentum continues, we anticipate around 10,000 more residential sales this year compared to 2024. That means more opportunities for everyone – first home buyers, investors and upgraders alike.”

Mixed economic outlook

Davidson said the economic backdrop remains mixed, with global uncertainty fuelled by recent tariff changes in the United States. And while the inflationary impact in New Zealand is expected to be relatively neutral, a softer global growth outlook may support further downward pressure on interest rates.

Despite these crosswinds, CoreLogic anticipates national home values to rise by about 5% throughout 2025, Davidson said.

“The year ahead is likely to deliver a subdued but broad-based upturn. Lower mortgage rates are doing much of the heavy lifting, but high listing volumes, ongoing labour market shifts and mortgage lending constraints such as debt-to-income ratio caps will temper the pace of growth.”

Download the free CoreLogic NZ’s April Housing Chart Pack at: www.corelogic.co.nz/news-research/reports/housing-chart-pack