Confidence in the housing market has weakened as households reassess affordability and the possibility of higher interest rates later in the year.

Buyer expectations are especially sensitive to Reserve Bank signals. Auckland sentiment has been a particular focus in recent market commentary.

Confidence matters because property decisions are emotional as well as financial; when households hesitate, market momentum can shift quickly.

Mortgage brokers say first-home buyers and investors are both pausing to reassess.

The key question is whether confidence steadies before the spring market.