House prices in Canterbury have dropped to their lowest point since September last year, but buyer interest is heating up, according to Trade Me’s latest Property Pulse Report.

The average asking price in Canterbury fell to $705,650 in May, a 0.6 per cent drop from April and the same decline year-on-year. It marks the region’s lowest average price in eight months.

Canterbury was not alone, with Auckland and Wellington also recording their lowest average prices since September 2024. Nationally, prices slipped 1.2 per cent to $845,250, following a 0.8 per cent fall in April.

Trade Me Property Customer Director Gavin Lloyd said prices fell across most regions in May, with only four out of 15 showing growth.

“Southland, Taranaki, the West Coast and Manawatū/Whanganui were the only regions showing some signs of growth,” he said.

Despite declining prices, demand is heading in the opposite direction. In Canterbury, buyer demand rose between five and six per cent from April, in line with increases also seen in Auckland, Southland and Taranaki.

National demand rose 2.4 per cent month-on-month and four per cent compared with May 2024.

Lloyd said a combination of increased affordability and greater property availability was fuelling buyer confidence.

“A plentiful supply of properties, coupled with more affordable loan repayments is giving buyers a sense of renewed confidence and motivation,” he said.

However, the pace of the market is slowing, with buyers spending more time browsing listings. The median number of days properties spent on the site increased to 70 in May, up from 62 in April.

Meanwhile, the number of listings fell slightly in May, down 1.3 per cent on April, though still five per cent higher than the same month last year. Auckland and Taranaki were the only regions to record listing growth.