A message from our chief executive
Dear Property Owner ,
Welcome to the penultimate edition of Ray White Now in 2024 – marking a distinct turning point for New Zealand ’ s housing market . Backdropped by dynamic local conditions and uncertainty in the global economy , the current real estate landscape presents opportunities for strategic decision-making . For sellers considering their options , understanding the trends driving buyer behaviour is more crucial than ever .
At the heart of today ’ s movement is the Reserve Bank of New Zealand ’ s ( RBNZ ) shifting stance on monetary policy . Recent Official Cash Rate ( OCR ) reductions have rippled through the mortgage lending market , contributing to a more affordable borrowing environment .
Yet , these changes aren ’ t linear . Retail mortgage rates — often influenced by global interest trends — are competitive but nuanced . Following a lacklustre year for the economy , lenders are locked in a race for market share , leading them to offer enticing incentives like cashback and flexible terms to attract key mortgage business .
For sellers , this has contributed to a ‘ sweet spot ’ in the market , where buyers are motivated by improved lending conditions and eager to act before the market dynamics shift again .
This continues to manifest in market activity , with both listings and sales rising significantly year-on-year . Ray White ’ s member network reported a 30 per cent increase in sales activity in October , driven by strong demand in the entry-level to $ 2 million price bracket and ultra-luxury homes .
Overlaying this local context are some critical global influences . The results of the recent Presidential election in the United States hint at political volatility in international trade and economic policy . Tariffs , fiscal expansion and rising bond yields in the U . S . could increase borrowing costs , adding complexity to New Zealand ’ s financial outlook .
For a trade-reliant country like ours , these changes could pressure both export earnings and the strength of the New Zealand dollar in the coming months . These dynamics and persistent domestic inflationary trends highlight the delicate balancing act the RBNZ faces in pursuit of economic stability .
Despite the uncertainty and a degree of volatility in the global economic environment , real-time data remains compelling for sellers . Auctions – often a barometer of market momentum – are surging , doubling month-onmonth across our Ray White member network . Entryand-mid-market segments are particularly active , and backup offers on listings , once a rarity , are becoming more common , signalling growing urgency among buyers to secure homes .
Even at the higher end of the market , anecdotal evidence suggests a shift from deliberation to action as buyers recognise the unique opportunities current market dynamics afford .
However , this market is not without guardrails . Debtto-Income ( DTI ) lending restrictions introduced by the RBNZ have tempered the equity-fuelled borrowing that has driven previous housing booms . While this prevents repeating the speculative highs of 2020 and 2021 , it also fosters a more stable , sustainable market . For sellers , it ’ s a reminder to approach timing strategically , leveraging today ’ s equilibrium of strong buyers ’ interest
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