Initially prices did fall by about 3% over April and May. But then buyers flooded to the auction rooms and online sales in response to some very stimulatory factors. Interest rates were cut from already record low levels to even lower ones and kept falling through to the middle of 2021.
Loan to value ratio restrictions were removed and the $10bn which we Kiwis normally spend travelling overseas got diverted to other factors, including buying up each others houses. Around the world people focussed on improving and modernising their lockdown nests, and with only so many people having renovation skills or able to find the relevant tradespeople, for many this meant purchasing a different house with more of what they were seeking.