The Wellington property market has recorded a ten-year high in total listing volumes across all main websites. After years of tight supply and bidding wars, buyers now find themselves in a market flush with options. For sellers, the rules have changed—realistic pricing and strong presentation are now essential to cut through the noise.

Listings Surge to Record Highs

New Zealand’s property market has seen an influx of stock, with 8,904 new listings in January 2025—21% higher than a year ago. Wellington, in particular, has felt this shift, with a noticeable uptick in the number of homes for sale. Total residential inventory on realestate.co.nz now sits at 35,712 at the end of February, up 14% year-on-year.

The reasons behind this surge? A mix of factors. Many sellers who had been sitting on the sidelines, waiting for better market conditions, have finally decided to test the waters. Meanwhile, higher mortgage costs, plus rates and insurance, are forcing some investors to offload properties, and slowing economic conditions mean more homeowners are looking to downsize.

What This Means for Buyers

For buyers, this is the moment they’ve been waiting for.

• More Choice, Less Pressure – Forget the desperate scramble to secure a property before someone else swoops in. With more homes on the market, buyers can take their time, compare options, and negotiate more aggressively.
• Price Flexibility – Increased supply means sellers can no longer dictate terms. Many are already adjusting their price expectations, offering incentives, or accepting conditional offers they wouldn’t have considered last year.
• Mortgage Rates Still a Hurdle – While the Reserve Bank’s recent OCR cuts have provided some relief, mortgage rates are still sitting higher than they were in 2021–2022. Buyers with strong financials will have the upper hand, as banks remain cautious with lending.

The Reality for Sellers

Sellers are facing a very different market compared to the frenzied post-pandemic years. Here’s what they need to consider:

• More Competition = Longer Selling Times – Homes are no longer flying off the shelves within days. Buyers have options, and properties that aren’t priced correctly or presented well are sitting longer.
• Strategic Pricing is Key – Overpricing a property in this market is a guaranteed way to get ignored. Sellers who price in line with market conditions—and are open to negotiation—stand the best chance of securing a deal.
• Renovation and Staging Matter More Than Ever – With buyers able to be choosy, homes that stand out in terms of presentation, quality, and overall appeal will move faster than those that feel dated or neglected.

Where is the Market Heading?

While the increase in listings has shifted the balance of power slightly towards buyers, it doesn’t mean house prices are about to crash. Wellington remains a desirable market, and although affordability remains a challenge, demand is still there—just on different terms.

• Interest Rates and Economic Conditions Will Shape the Market – If interest rates fall further in 2025, expect more buyer activity to pick up. On the flip side, if job security weakens, some buyers may hesitate.
• Investors Are Watching Closely – Many investors pulled back in recent years due to rising costs and tougher regulations. But with prices stabilising and rental demand high, some will see this as the right time to re-enter.
• First-Home Buyers Could See Opportunity – Government incentives, coupled with reduced competition, might finally allow first-time buyers to get a foot in the door.

The Wellington market is shifting, and those who adapt will come out ahead. Buyers now have the upper hand, but those waiting for a “crash” might be disappointed. Sellers who price strategically and present their homes well will still find buyers, but they’ll need to work harder than before.

For now, the key takeaway is this: the days of frantic bidding wars and blind panic-buying are over. We’re in a new phase—one where patience, negotiation, and strategy will define who wins and who gets left behind.

References:

• https://news.realestate.co.nz/blog/new-zealand-property-market-2025-january
• https://www.1news.co.nz/2025/02/19/all-major-banks-make-cuts-to-some-home-loans-in-wake-of-ocr-fall/ 
• https://www.opespartners.co.nz/property-markets/wellington 
• https://www.opespartners.co.nz/mortgage/interest-rates/interest-rate-predictions