Housing Market Holds Steady As Global Tensions Weigh On Confidence

New Zealand’s housing market remained resilient through March, with buyers continuing to transact despite the onset of the Iran conflict and a sharp rise in petrol prices.

Data released today by the Real Estate Institute of New Zealand (REINZ) in its Property Report for March 2026 shows sales activity was essentially unchanged year-on-year, while prices remained broadly stable – a result that reflects a market absorbing a global shock rather than retreating from it.

Every transaction captured in the March data was made during the first full month of the conflict, as fuel prices climbed above $3.30 per litre and consumer confidence fell sharply. Despite this, buyers remained active across much of the country.

“March shows a housing market holding its nerve. Despite rising fuel costs and global uncertainty, buyers didn’t step away, but they are becoming more cautious and taking longer to make decisions,” REINZ Chief Executive, Lizzy Ryley, said.

“That caution is reflected in the numbers. Sales were essentially flat year-on-year at 7,853, and while prices remain stable, the seasonally adjusted figures show a slight dip in activity. It suggests buyers are still active, but are more measured, responding to cost pressures rather than stepping away from the market,” she said.

Nationally, the figures point to a market that remains stable, but not uniform. The median price eased slightly by 0.3% year-on-year to $788,000, while excluding Auckland, median prices increased by 1.4% to $710,000 – highlighting continued strength across parts of the country.

While headline numbers appear steady, seasonally adjusted figures indicate a modest softening in underlying demand compared with February, consistent with a more cautious buyer environment.

Performance across the country continues to vary by region, reinforcing the uneven nature of the current market. Eleven of the sixteen regions recorded year-on-year increases in median prices, led by Southland (+11.8%), Nelson (+9.2%) and Northland (+8.7%), while Wellington and parts of the East Coast recorded softer results.

Time to sell remained steady in March, with properties taking a median of 41 days nationally – unchanged from a year ago but 15 days faster than February. Excluding Auckland, the median was also 41 days, down 14 days month-on-month, reflecting a return to more typical seasonal conditions rather than a shift in underlying demand.

Supply levels showed little change. New listings* increased just 0.2% year-on-year to 12,055, while excluding Auckland, there was no year-on-year change, with 5,513 new listings. National inventory levels* rose modestly by 2.1% from last year to 37,638 properties, reinforcing that there has been no significant lift in sellers entering the market despite recent global uncertainty.

Auctions continue to play a key role in some regions, particularly Auckland, Bay of Plenty and Canterbury. Nationally, 1,266 properties were sold at auction, accounting for 16.1% of all sales. In Auckland, nearly one in three properties (29.6%) were sold by auction, compared with 9.9% across the rest of the country.

The House Price Index (HPI), which provides a more accurate measure of underlying value trends, eased slightly over the month to 3,641 and remains 14.9% below its peak. However, regional performance continues to diverge. Otago reached a new record high HPI of 4,318, up 3.6% over the past year, while Canterbury sits just 0.03% below its peak – highlighting the strength of South Island markets, which have largely recovered from the 2022–23 downturn, while other parts of the country continue to rebuild more gradually.

“The Reserve Bank holding the OCR at 2.25% has provided a level of stability for the market, but there is still uncertainty ahead. While we haven’t yet seen a significant impact from global events in the data, agents across the country report that buyers became more cautious toward the end of March,” Lizzy Ryley said

“The focus now shifts to what happens next. Any early signs of a ceasefire have been overshadowed by renewed tensions, leaving uncertainty around fuel costs for New Zealand households and whether confidence begins to rebuild over the coming months,” Ryley says.

*Inventory and Listings data courtesy of realestate.co.nz

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