Why sell now ?
Daniel Coulson Chief Executive Ray White New Zealand
With economic policymakers now certain domestic inflation is finally under control , property purchasers are presented with a crucial opportunity .
News the Reserve Bank of New Zealand ( RBNZ ) unexpectedly cut the Official Cash Rate ( OCR ) to 5.25 per cent reverberated across the country last week , signalling the first rate cut since February 2020 and an official end to a prolonged period of tightening monetary policy aimed at curbing consumption .
The move has become the catalyst for a distinct shift in real estate dynamics whilst confirming what many had anticipated : a ripe environment for strategic property decisions .
With the OCR expected to drop further and positive economic and regulatory shifts on the horizon , it begs the question – could now be the perfect time to sell ?
A MARKET POISED FOR ACTION
The RBNZ ’ s OCR reduction was not merely a reactive measure , but a strategic move broadly anticipated by the market . Revised projections indicate we could see a sub-five per cent OCR by the end of the year , implying we can expect further rate reductions at both the October and November OCR reviews . This significant adjustment reflects a broader strategy to ease monetary policy over the next 12 months .
This evolving environment offers property owners a unique advantage – the ability to leverage favourable conditions before further changes unfold .
As market conditions shift , sellers who act now may find themselves in a solid position to capitalise on the opportunities presented by a lower interest rate environment ahead .
Source : mortgages . co . nz , Tony Alexander 7