The Block NZ 2017: Potential home buyers waiting to see effects of election

It was a dramatic finale to The Block on Sunday night with slow bidding and low profits compared to other years.

Winning contestants Andy and Nate's home had originally not met reserve at the first auction, but went on to win in a second auction.

Real Estate Institute of New Zealand CEO Bindi Norwell said this is typical of an auction in Auckland's current housing climate.

"What typically happens is the auction might pass in and then they'll negotiate after. It doesn't mean it's not sold, it just might mean it takes a little bit longer."

She said people are taking a "wait and see approach" to house prices ahead of Saturday's election.

"We've seen the market in Auckland slow down a little bit so auctions take a little bit longer. People want to see how [the election] impacts them personally. I think it will come back again after the election. "

Ms Norwell was adamant that what happened on The Block is "absolutely not" the burst of the Auckland housing bubble.

"Price has gone down about 1 to 2 per cent in Auckland but we've seen it grow quite a lot in the regions. Auckland has been stabilising for a few months now and that's actually a good thing for long term growth. Those crazy prices we used to have had come back down, so that's a good thing."

"There's not enough supply, we need more houses, there's more demand, people are coming to New Zealand, net migration is positive. I think long term we'll see that stabilisation continue."

Newshub.