Photo: RNZ / Marika Khabazi
The property market remains stalled with more houses for sale and asking prices still lower than a year ago.
The average asking price on realestate.co.nz fell 0.8 percent to $859,301 in May on the month before, with the price 1.6 percent lower than a year ago.
The site's chief executive Sarah Wood said the property market had been relatively stable since late 2022, with the average asking price ranging between $860,000 and $890,000.
"Eighteen months ago, we saw a shift from a fear of missing out to a fear of overpaying. Since then, things have stabilised. Over the past year and a half, we've experienced a remarkably consistent market."
She said the housing market has better balance between supply - which was up 22 percent on a year ago - and demand, which was being reflected in prices.
"For buyers, increased stock levels mean more options and possibly better bargaining power.
"For sellers, heightened competition requires careful pricing strategies, optimal property presentation and a good marketing strategy to stand out from the crowd."
Among the main regions, Auckland's asking price was $1.06m, moving the same amount as the national average, Waikato prices were about 3 percent higher, and Canterbury prices were marginally higher.
Central Otago/Lakes remained the most expensive at $1.45m, down 8.6 percent on April, but nearly 1 percent higher than a year ago.
However, the biggest price fall was in Wellington with the average price plunging 13.4 percent on April to $739,497, the lowest since November 2020, and 14 percent lower than a year ago.
Public service job cuts and a tighter job market could be weighing on the market and asking prices, Wood said.
"When the market is softer, price becomes the primary lever for sellers wanting to move their properties more quickly. Unlike other factors such as location or property size, price can be adjusted."
It was still not clear if the property market had hit the bottom, but with more houses on the market conditions were probably favouring would-be buyers, Wood said.
It was possible that changes to bank lending rules by the Reserve Bank, which come into force next month, might slowly start to influence the market.