The Cotality home‑value index shows NZ house prices were flat in May 2026 after a 0.2% decline in April.
Year‑to‑date, prices have risen only 0.4% from the two‑year low recorded in August 2025.
The stagnation is attributed to higher home‑loan interest rates and the global energy shock stemming from the Iran war, which has also driven surging fuel prices.
Consumer and business confidence have been hit hard, adding to broader economic weakness signals.
Analysts note the possibility that the Reserve Bank of New Zealand could raise its Official Cash Rate to counter emerging inflation pressures, implying house prices may remain flat throughout 2026.
Kelvin Davidson, chief property economist at Cotality, highlighted that continued interest‑rate hikes and the prolonged Iran conflict constitute significant headwinds for sales activity and property values.
