A message from our chief executive
Dear Property Owner ,
In a market that ’ s been steadily anticipating change , the recent cut in the Official Cash Rate ( OCR ) by the Reserve Bank of New Zealand ( RBNZ ) has confirmed what many in New Zealand ’ s property sector had already expected .
The long-anticipated move and evolving government policies have recently reignited market activity and supported those dipping their toes into the market to move from cautious optimism to confident action .
Given the proven link between lower mortgage lending rates and increased housing market activity , some homeowners might consider waiting for potential value growth before making a move . However , today ’ s favourable conditions offer a unique advantage – buyers can secure properties at current prices while benefitting from tomorrow ’ s lower interest rates . This provides an edge as buyer competition intensifies , unlike the uncertainty of future market conditions .
Buyers and sellers are heartened by recent revisions by the central bank to its OCR track , which now implies the next rate reduction will happen in October , with a total 75 basis points of OCR cuts forecast by the end of 2024 .
This would bring the OCR down below five per cent before we see the new year .
Across our Ray White member network , we ’ re aware buyers and sellers have been factoring an OCR cut into their strategies for some time , and the market has responded accordingly , with increased activity observed over the past several months .
In the last 28 days , our network reports a nearly 29 per cent increase nationally in home inspections compared to the previous 12 months . On the financial side of the ledger , our partners at Loan Market report a 49 per cent increase in mortgage pre-approvals compared with 12 months ago .
These results clearly show a spike in purchasing intentions , reflecting growing confidence amongst Kiwis that the cost of borrowing will continue to fall – and the best time to buy might already be here .
Source : Reserve Bank of New Zealand
With mortgage lending rates set to ease further , now is a crucial time for property owners to evaluate their options . Staying informed about recent changes is essential for making confident , strategic decisions – whether you ’ re considering selling , exploring new investments , or keeping up with market developments .
Government policies remain pivotal in shaping the market ’ s trajectory . An easing of Loan-to-Value Ratio ( LVR ) rules , adjustments to the Brightline Test ( BLT ), and the reinstatement of interest deductibility are creating a more favourable environment for investors and first-home buyers . These shifts are helping to reduce uncertainty , allowing more Kiwis to enter the market with clarity as the fixed costs of homeownership become more predictable .
Photo : 97 Seaview Road , Remuera , Auckland | Proudly marketed by Steve & Nila Koerber
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