After two turbulent years, the property market is once again in the spotlight. As the economy steadily recovers from a significant slowdown, many New Zealanders are asking the same question: is 2026 shaping up to be a better time to enter (or re-enter) the market?
While no investment comes with a crystal ball, the property market tends to follow a familiar pattern: when interest rates fall, prices lift – and when they climb, prices soften. Over the past few years, we’ve seen the latter in full force. But with recent economic commentary indicating interest rates may now be at their lowest point in the cycle*, it’s natural to wonder if we’re on the brink of a shift.
This article explores what may be ahead for 2026, what truly influences property prices, and how to assess whether property investing is right for you – and whether you’re ready to act.
Signs of a Meaningful Lift
Predicting the exact trajectory of the property market is impossible, but there are encouraging signals emerging.
Russell Benshaw from Key2Invest has observed a clear change in buyer behaviour:
“At Key2Invest, we’re seeing a meaningful lift in enquiries from people who are serious about taking their next step. The behaviour has shifted from passive search to active. I’ve noticed people are getting ready to act, which is a positive sign that things are starting to shift.”
This early lift matters because it speaks to a core economic principle: supply and demand.
When demand rises, supply begins to tighten – fewer properties sit on the market, and competition gradually increases. This often places upward pressure on prices.
But when demand falls, the opposite occurs: listings accumulate, buyers gain bargaining power, and prices soften as sellers compete for attention.
What we’re seeing now is the first hint of demand rebuilding – not a frenzy, but a quiet return of motivated buyers preparing to move.
While buyer motivation appears to be increasing, it doesn’t mean this is happening across the board. Not all properties perform equally, and quality matters. As Russell explains:
“Quality properties are now attracting multiple buyers and are being sold relatively quickly when they become available. A good example is home-and-income properties, which appeal to both investors and extended families.”
What Might Influence Prices in 2026?
Interest rates are one of the most powerful levers affecting property prices, but they’re far from being the only factor. If the past few years have taught us anything, it’s that conditions can change quickly. Low interest rates aren’t guaranteed, and waiting for the “perfect” rate environment isn’t a strategy.
Other factors that can influence property prices include:
- Population growth: As the number of people in our country increases, so does the need for housing.
- Employment opportunities: More jobs attract more people, boosting both the rental and ownership markets.
- Council investment and infrastructure planning: Transport links, public amenities, and development zoning can transform the desirability of an area.
- Government or economic policies designed to stimulate growth: Incentives, tax changes, or development schemes can all impact demand.
Understanding these key structural influences can make all the difference in determining when and where to buy.
But Is 2026 the Time to Buy?
With buyer activity improving and interest rates potentially at their lowest, now could be a good opportunity to enter the market. But the real question isn’t “is 2026 the right time to buy?” – it’s “am I ready to buy?”
Spotting the perfect time to buy is as good a strategy as trying to catch the exact bottom of the sharemarket – possible in theory, but rarely successful in practice.
The right time for you depends on whether:
- You can secure lending on terms you’re comfortable with.
- Your cash flow is stable enough to manage mortgage payments, top-ups and ongoing expenses.
- You have a financial buffer to weather unexpected costs or changes in income.
- You have both a clear long-term holding strategy and an exit plan.
- You can tolerate the financial and emotional risks that come with property investing.
If you can confidently tick off these boxes, then the question becomes less about timing the market and more about finding the right property, in the right location, with the right strategy behind it.
If you’re considering a financial move in 2026, a solid financial plan will do far more for your success than trying to pick the perfect market moment. If you’d like help assessing your readiness or understanding how property investing fits into your wider financial goals, we’re here to support you.
Book a consultation today to get started (a fee applies).
Disclaimer: This blog post is for informational purposes only and does not constitute individual financial advice. If you’re interested in receiving financial advice, you can book a consultation with an enable.me coach. Costs apply.
