New Zealand Home Value Index (HVI) fell 0.1% in January, extending last year's broadly flat property market trend, according to figures from Cotality released on Thursday.

The HVI also showed that the national median value in January was NZ$802,617, down 1% from a year earlier and about 18% below its peak in early 2022.

"January's muted result for property values at the national level was simply a continuation of the trends we saw throughout most of last year," Cotality's Chief Property Economist Kelvin Davidson said.

The value of stand-alone houses fell 0.7% over the past 12 months, while townhouses dropped 1.7% and apartments declined 4.1%, per the report.

Trends across main centers in January were mixed, with Auckland and Wellington down 0.3% and 0.1%, respectively, Hamilton and Christchurch flat, and Tauranga and Dunedin up 0.3% and 0.4%, respectively.

Sales activity is expected to rise this year, reducing the stock of unsold listings and boosting house prices, supported by lower interest rates, a growing economy, and gradually falling unemployment, Davidson said.

"All in all, it could prove to be another relatively subdued year for housing in 2026," Davidson added.