One of those factors is talk of an over-supply of housing, largely with regard to Auckland. People’s house price change expectations alter after actual price changes, not before. I have noted in the past that this survey tends to reflect what is happening or has already happened with house prices. We can see this as the blue columns showing expectations tending to shoot up after the red line showing quarterly house price changes has shot up. Sales can actually pick up because of that just as prices fall further.

Source: Stuff September 02, 2022 22:00 UTC