However there are greenshoots in various areas.
The Real Estate Institute (REINZ) latest statistics for May said nationally the market showed a general theme of increases this month with higher sales counts, increased stock levels, more listings, and properties selling more quickly than a year ago.
REINZ chief executive Jen Baird said the annual increases contrasted with current challenges in securing finance, changes in the job market, and the wait on OCR and interest rate changes.
First homeowners and owner occupiers were the most active buyer group across the Southland region.
Ms Baird said attendance at open homes varied. New listings attracted higher numbers of visits while those that had been on the market for longer recorded lower interest from buyers.
Auctions remained steady, she said, but like most regions, economic challenges influenced market sentiment.
A 20-year power contract to secure the future of the Tiwai aluminium smelter has been greeted favourably by the real estate industry.
The industry was cautiously optimistic that investors would return to the market once bright line property rule changes occurred.
The current median days to sell is 34 days in Southland, which is below the long-term May average of 40 days. Compared to April, 2024, the median price has dropped by 1.1% although it took three less days to sell than in April.
Overall in Southland, 158 houses were sold in May, which was considerably up from the 115 in April.
The May figures last year had 155 houses sold.
