Will regulations impact?
The latest real-time data from realestate.co.nz showed that average asking prices remained stable in June, marking an 18-month stretch of unchanged prices nationally.
Total stock increased by 28.6% year-on-year, and new listings rose by 25.5% compared to June 2023.
“This is a significant period of price stability,” said Sarah Wood (pictured above), CEO of realestate.co.nz.
New regulations in effect
New regulations on debt-to-income ratios (DTIs), loan-to-value ratios (LVRs), interest deductibility, and the bright-line period are now in effect. These changes could impact the market, as many properties waited to be listed until the new bright-line rules took effect on July 1.
“Real estate agents have reported a backlog of properties waiting to be listed until the new bright-line rules took effect,” Wood said.
Regional price trends
Southland saw the largest increase in its average asking price, up 12.1% year-on-year.
The West Coast, however, returned to the bottom of the table with a 13.6% month-on-month drop to $476,892. Wellington's prices rose 10.9% month-on-month to $818,352, returning to normal after an unusual dip in May.
“Prices have fluctuated between $860,000 and $890,000 since November 2022,” Wood said, highlighting the stability despite economic uncertainty.
Rental market insights
Renters had plenty of choices in June, with new rental listings up 26.9% year-on-year. 
Despite a 10.4% decrease from May, this marks the second consecutive month of high new rental listings. Average weekly rental prices increased by 5.9% to $653 nationally.
“Landlords report a challenging environment. Even after lowering prices, some have found interest from potential tenants remains low,” Wood said.
Expert advice crucial
Wood advises both buyers and sellers to stay informed about local market conditions and to seek expert advice, especially with the new DTI ratios capping buyer spending at six times their income.
“Understanding your local market will be more important than ever now,” Wood said.
Outlook and recommendations
Wood predicts that buyers and sellers may adopt a wait-and-see approach due to the new regulations and ongoing economic uncertainty. She encourages thorough due diligence and working with experienced real estate agents.
“The slower pace of the current market allows buyers and sellers more time to conduct due diligence and seek expert advice,” she said.
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