New Zealand's residential property values largely remained flat over the summer, in contrast to robust buzz in the housing market amid a choppy outlook on interest rates and inflation, triggered by geopolitical tensions, QV said on Wednesday.

According to the latest Quotable Value (QV) House Price Index, the average residential home value grew nationally by a modest 0.2% in the three months ended February, wherein national average stood at NZ$909,139.

The steady February figures were 0.4% lower than the same time last year but nearly 22% higher than in March 2020.

Across a leveled performance in main urban areas, Dunedin showed the strongest growth with home values rising 2.6% over the summer, 1% higher than a year ago. While Nelson registered a small decline in the quarter.

Listing levels and buyer demand appear well balanced, keeping property values broadly stable for the time being, QV added.

"Optimism seems to be growing as we start to see early signs that the wider economy may be picking up again," said QV spokesperson Simon Petersen.

However, geopolitical uncertainties have dampened the outlook, especially with regards to interest rates and inflation. QV expects the next month to provide a clearer picture for the rest of 2026.