Housing Market Steadies As Prices Hold And Regional Strengths Continue

REINZ Snapshot – May 2026 compared to May 2025

• National median price: $775,000 (+1.3%)
• National sales count: 6,523 (-12.6%)
• National HPI: 3,585 (-0.6%)
• Inventory levels*: 36,130 (+5.0%)
• New listings*: 9,521 (+0.3%)
• Days to Sell: 47 days (no change)
• Strongest Regions: Southland, with a record median price of $540,000 (+10.2%) and Canterbury, with an equal record of $725,000 (+6.6%)

May 2026 Overview

May 2026 points to a housing market that is steadier but still cautious and regionally uneven. The latest Real Estate Institute of New Zealand (REINZ) data shows the national median sale price in May increased 1.3% year-on-year to $775,000, while Days to Sell remained unchanged at 47 days.

Sales counts for May were down -12.6% compared with May 2025, but that comparison needs context. May last year followed earlier Official Cash Rate (OCR) cuts and stronger market momentum, and while May 2026 sits below the historical May median, the month remains well clear of the lower end of the 35-year REINZ range.

The national House Price Index (HPI) for May remains slightly negative on both an annual (-0.6%) and three-month (-1.7%) basis, pointing to a softer underlying price trend. However, the raw and seasonally adjusted median sale price both recorded the same year-on-year increase in May, reflecting continued strength in some of the country's higher-value and better-performing regions.

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While buyers remain selective, market conditions continue to vary across the country, with some regions in the South Island recording particularly strong results, including new median price records.

Key Influences

The Reserve Bank's decision on 27 May to hold the OCR at 2.25% confirmed the end of the rate-cutting cycle that had supported market activity through 2025. In Wellington, buyer sentiment during May was also affected by the pre-Budget announcement on 19 May of significant public sector job reductions – a Wellington-specific confidence factor that contributed to the region's continued weakness.

Cost-of-living pressures, including elevated fuel costs, and uncertainty ahead of the national election in November also continued to weigh on market sentiment. Salespeople across the country reported that household budget pressures remained a key consideration for buyers, contributing to a more cautious, selective approach to purchasing decisions.

However, the national picture for May was not uniform. In parts of the South Island, strong rural commodity prices, relative housing affordability, and ongoing migration from larger centres continued to support demand, contributing to record median sale prices in Canterbury and Southland.

Regional Performance

Ten of the 16 regions recorded positive year-on-year median price movements, with Southland and Canterbury the strongest performers:

• Canterbury – equal record median price of $725,000, up 6.6% year-on-year. The one-year HPI of +3.0% is the second highest nationally, behind Southland, indicating strong growth in underlying property values over the past 12 months. The Kaikōura District Territorial Authority (TA) also recorded a record median price of $910,000, up 4.6% from the prior record which was set in February 2025.
• Southland – a record median price of $540,000, up 10.2% year-on-year, alongside a record median price for Invercargill City of $540,000, up from $535,000 in September 2025. Sales above $1 million, once relatively uncommon in Southland, are becoming increasingly frequent and contributed to the region's record median price. The region also recorded the highest one-year HPI nationally at 5.8%, reflecting continued strength in underlying property values.

Apart from Canterbury and Southland, notable regional median price increases include:

• Northland, up 3.9% to $660,000
• Taranaki, up 2.9% to $602,000
• Auckland, up 2.6% to $1,005,000

The number of reported sales was lower year-on-year in 15 of the 16 regions. Hawke’s Bay was the only region not to record a decline, with sales counts unchanged from May 2025. Despite softer sales activity nationally, Canterbury and Southland continued to outperform on price growth.

Supply Indicators – Listings* and Inventory*

National listings increased just 0.3% year-on-year to 9,521 in May 2026, providing further evidence of a market that is stabilising heading into winter. Canterbury and Southland continued to absorb new stock quickly, while Marlborough recorded the sharpest year-on-year increase in unsold inventory.

Auckland recorded 3,630 listings, marginally lower than May 2025. This was the first time in 2026 that Auckland's monthly listings total has not exceeded the equivalent month a year earlier.

Market Outlook

May 2026 showed early signs of a housing market that is becoming more settled, but whether that trend continues will depend on several factors in the months ahead. The July OCR decision will be a key domestic influence, alongside the phased impact of Budget 2026 and the national election, while developments in the Iran conflict could affect inflation expectations and household confidence, particularly if fuel prices remain elevated.

Regional performance is also likely to remain mixed. While many buyers continue to take a cautious approach, regions with strong local economies, relative affordability, and population growth may continue to outperform broader national trends. Canterbury and Southland have demonstrated this resilience.

As winter progresses, a key indicator will be whether sales activity keeps pace with new supply. With listings broadly stable and buyer confidence still measured, current indicators suggest the underlying value base remains relatively stable, although market conditions are likely to continue varying across regions.

Fact sheet

Median Prices

• Ten of the sixteen regions recorded a year-on-year rise in the median price, with Southland showing the strongest growth at 10.2%.
• Across Auckland’s seven territorial authorities, three recorded an increase compared with May 2025, with Manukau City showing the largest lift at 5.7%.
• In Wellington, five of the eight territorial authorities saw an annual increase, led by South Wairarapa District at 10.7%.
• Kaikoura and Invercargill Districts reached a new all-time territorial authority median price records this month: $910,000 and $540,000 respectively, beating their previous highs of $870,000 and $535,000 recorded in February and September 2025, respectively.

Sales Counts

For the month of May

• Gisborne has the equal lowest (same as in 2023) number of sales since records began
• Wellington had the lowest number of sales since 2022

Median Days to Sell

For the month of May

• Bay of Plenty, Hawke's Bay, Manawatu-Whanganui and Tasman had the lowest median DTS since 2021.
• Auckland had its highest median Days to Sell since 2020

House Price Index (HPI)

• Southland recorded the strongest HPI movement year-on-year, increasing 5.8%, ahead of Canterbury (3.0%) and Otago (2.8%).
• Over the three months to May, Southland showed the highest HPI growth nationwide at 0.8%, followed by Northland (0.8%) and Otago (0.8%).
• New Zealand HPI year-on-year change is a decrease of -0.6%, a slight improvement from the 0.9% decrease reported last month

Inventory

• Inventory increased year on year in twelve of the fifteen included regions
• Auckland and Wellington have each experienced 28 consecutive months of year-on-year inventory growth.

Listings

• New listings increased year on year in seven of the fifteen included regions.
• Taranaki showed the strongest annual growth in listings, rising 19.2% on the same month last year.

Auctions

• In New Zealand, there were 820 auction sales (12.6% of all sales) in May 2026. For the same period last year, there were 891 auction sales (11.9% of all sales).

More information on activity by region can be found in the regional commentaries visit the REINZ’s website: https://www.reinz.co.nz/Property-reports?hkey=1f7b8429-2b68-4c51-b66e-1b6132d911e8

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