Cotality data shows Kiwis holding on to homes for longer amid prolonged housing downturn

The national median resale gain in the first three months of the year was $285,000. Photo / 123rf

Homeowners are holding on to properties for near-record periods as a prolonged housing downturn continues to impact resale outcomes, according to new data from Cotality.

Cotality’s latest Pain and Gain report, covering the March quarter, shows profit-making resales had a median hold period of 10 years, matching the longest ownership duration on record.

The national median resale gain in the first three months of the year was $285,000, down from $298,000 in the previous quarter.

In the first quarter, 87.8% of residential properties resold for more than their original purchase price, down from 88.1% in the previous quarter.

The median resale losses remained relatively contained at $54,000, the report said.

“Property values have been broadly flat for some time, and the pain and gain figures are reflecting that same gradual downward shift rather than a slump,” Cotality NZ chief property economist Kelvin Davidson said.

“At the same time, hold periods for profitable resales have stretched to double digits, which may indicate some owners are waiting longer before bringing properties to market.”

Auckland and Wellington had the weakest resale conditions among the main centres.

Almost one in five (19.9%) Auckland resales recorded a loss in Q1, with a median loss of $77,000.

In Wellington, 16.7% of resales recorded a loss, with a median loss of $86,120.

However, both centres generated some of the country’s largest resale gains for longer-term owners, with median profits of $350,000 in Auckland and $345,000 in Wellington.

Christchurch continued to record the most resilient resale performance among the major centres, with only 4.7% of resales making a loss in Q1, with a median loss of $32,000.

Dunedin recorded the smallest median resale loss nationally at $15,000.

Apartments also remain under pressure, with 41.1% of resales made at a loss compared with 11.3% for standalone houses.

Median resale losses for apartments were almost $70,000, compared with around $50,000 for standalone houses.

“Apartments generally experienced less of the post-Covid boom than standalone houses, so they’ve had less of a buffer through the downturn,” Davidson said.

“But there’s still little evidence of widespread distressed selling or fire-sale behaviour. A lot of these losses are relatively modest in the context of total property values.”

Davidson said the resale figures were consistent with a housing market that had been largely flat for an extended period.

“Property values may have edged a little higher in recent months, but the market still looks pretty subdued overall,” he said.

“Sales activity has been soft to start the year, listings remain elevated, and, with uncertainty around the Iran conflict still very high and mortgage rates potentially drifting upwards again, it’s difficult to see anything other than another fairly sluggish period for the housing market.”