Why sell now?
Daniel Coulson Chief Executive Ray White New Zealand
New Zealand’ s housing market has been remarkably unremarkable so far in 2025, which, following a turbulent period defined by surging interest rates, stubborn inflation, and subdued market confidence, is actually a good news story, says Ray White New Zealand Chief Executive, Daniel Coulson
“ Building that sense of stability has been crucial for both buyers and sellers to grow their confidence and re-engage with the market. This has helped to support recent activity and promote renewed dynamism, which we’ re seeing in increased opportunities on both sides of the transaction across the market.
“ While forward-looking indicators are positive as we head into the second half of the year, the balance is delicate, and homeowners contemplating a sale in 2025 are acutely aware there may be a narrow window of opportunity here.”
RELIEF HAS ARRIVED, BUT FOR HOW LONG?
After peaking at historically high levels in 2023, Coulson says interest rates have eased significantly in response to a softening labour market and a more contained inflationary environment.
“ The Reserve Bank of New Zealand( RBNZ) has already trimmed the Official Cash Rate( OCR) to 3.50 per cent, and another rate cut is expected later this month.”
This downward trajectory has translated into more competitive mortgage lending offerings, supported by declining wholesale lending rates and a global financial easing cycle.
“ The average two-year fixed rate charged by New Zealand’ s primary banks has fallen from around seven per cent at the end of 2023 to little over five per cent in March 2025. That dramatic shift has restored some affordability to the residential market.”
Source: interest. co. nz
Coulson says that declining mortgage lending rates typically spark a significant uptick in transaction activity, which fuels value growth.
“ We haven’ t had the same dramatic change as has occurred in previous cycles. This means sellers can still take advantage of lower borrowing costs to attract finance-ready buyers, without having to contend with a sharply rising market that could squeeze demand.
“ Here in New Zealand, the direction of travel for interest rates is down. However, inflation data can always surprise on the upside, as international pressure shifts and policymakers respond to global movements. Should this occur, it would diminish one of the key advantages of today’ s market, providing some urgency to transact under currently favourable conditions.”
BANK LENDING AND AFFORDABILITY
Coulson says that the most significant shift since the peak of rate hikes has been the improvement in housing affordability nationwide.
“ Mortgage payments as a share of disposable income have declined substantially, particularly in main centres including Auckland.
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