It maybe slightly different in NZ as we are on variable rates, or fixed terms for upto 5 years or so that changes things. But we are now in correction period.
Prices sky rocketed as money was printed, now the shine has worn off and the fundamentals don't support sky high prices. With much the same story as a number of countries - interest rates causing cost of living hikes and wages not keeping place, the "sure bet" of the housing market is no longer, and the prices have dropped.
https://tradingeconomics.com/new-zealand/housing-index
NZ was living off that "they'll never go down" attitude. The people that bought in the last year are starting to hurt, and unfortunately/fortunately (depending on which side of the coin) the sentiment just starts shifting. Once it starts shifting, people get nervous - over confidence bidding is out the window. Even though we (theoretically) have a supply and demand issue, even though construction costs are sky rocketing, people start realising they don't need that 4-5 bedroom monster, or that 2nd holiday home that they can air bnb out.
Seriously at one point during I think it was 2021 - I was in a c/md level position, and our house went up more than I earned in one year - we're talking a fairly standard 3 bdrm house - nothing fancy. That was spectacular... that spurned on a lot of "mom and pop" investors to go nuts buying houses, when they shouldn't have. And now they're looking into negative equity territory.