Opportunities presented by change
Treena Drinnan Chief Agency Officer Ray White New Zealand
As we enter the final quarter of 2024 , the New Zealand property market is gathering momentum , driven by the Reserve Bank ’ s ( RBNZ ) recent decision to reduce the Official Cash Rate ( OCR ) by 0.5 per cent . This cut , the second consecutive reduction this year , is expected to set the stage for lower interest rates well into 2025 .
FOR SELLERS
A reduction in mortgage lending rates has already filtered through to increased buyer activity . Auction participation and property viewings are on the rise across our Ray White network , and this trend is expected to gain momentum in the coming months .
These favourable financial conditions have continued to feather the bed for a more dynamic real estate landscape , presenting unique opportunities for buyers , sellers , homeowners , and investors .
FOR BUYERS
The current environment presents an exceptional opportunity , with property prices stabilising and interest rates dropping . Buyers can secure their next home at today ’ s values while benefiting from potentially lower mortgage repayments in the future .
The combination of favourable buying conditions and improving borrowing terms makes this an ideal time for those looking to enter or move within the market . This rare alignment creates a “ best of both worlds ” scenario where purchasing a home can offer both immediate and long-term financial advantages .
Sellers can confidently bring their properties to market , knowing that a competitive environment is emerging , with more buyers eager to secure properties while financing is favourable . This spring season presents a ripe opportunity for sellers to achieve strong results , with the added advantage of motivated buyers seeking to take advantage of the current conditions .
FOR HOMEOWNERS AND INVESTORS
Lower interest rates will bring relief for current homeowners by reducing mortgage repayments , providing more flexibility in household budgets .
Investors also stand to benefit as lower borrowing costs increase the appeal of expanding property portfolios . With rates falling and demand for properties still strong , now is a particularly attractive time for investors to assess their portfolios and consider new acquisitions .
14