Despite an increase in property listings, the total value of price reductions in New Zealand’s real estate market has decreased. Sellers are adjusting their asking prices closer to buyer expectations. In Q1 2026, sellers reduced their asking prices by an average of $33,212.
Coromandel recorded the largest average drop at $72,049. Wellington followed with an average reduction of $51,841. Northland saw a drop of $39,353, while Central Otago/Lakes District had an average reduction of $38,774. Auckland’s average asking price reduction was $37,975.
Nationally, 4.9% of all listings were reduced in price during the same period. Manawatū/Whanganui had the highest proportion of listings reduced at 12%. The total value of price reductions reached $54.7 million in Q1 2026. However, this figure represents a decline of more than $8 million year-on-year.
Vanessa Williams commented on the trend: “More listings would normally mean more discounting, but that’s not the case this quarter.” This observation highlights a shift in seller strategies as they adapt to changing market conditions.
The average price drop per listing has been trending down over the last two years. For comparison, the average price drop per listing in Q1 2024 was $42,864. This indicates a consistent effort by sellers to find a balance between their pricing and what buyers are willing to pay.
Williams noted further that “conditions can vary significantly across the country.” Different regions experience distinct market dynamics that affect pricing strategies and buyer behavior.
Ultimately, she emphasized that “getting the price right from the start is key.” Buyers are still taking a considered approach, but the market is moving steadily. The national average asking price has remained flat for about three-and-a-half years.
The future remains uncertain as market trends continue to evolve. Buyers and sellers alike will be watching closely for any shifts that may impact house prices and overall market activity.
