Realigning expectations in a recalibrating market
Treena Drinnan Chief Agency Officer Ray White New Zealand
June has provided yet another signal that New Zealand’ s residential property market is steadily strengthening, not surging, but moving forward with resilience.
There’ s a shared sense that buyers and sellers are adjusting their expectations in real time. Confidence isn’ t explosive, but it’ s building. Currently, those who are prepared are the ones who are progressing.
At a macro level, we’ re navigating a complex blend of forces. May’ s 25 basis point cut to the Official Cash Rate( OCR), the sixth in this cycle, brought the rate to 3.25 per cent. While the Reserve Bank( RBNZ) is expected to pause in July, further easing is forecast. But monetary stimulus alone is not doing all the heavy lifting.
Annual net migration has dropped sharply from 113,700 to just 32,900, easing some of the population-driven pressure on demand. Meanwhile, rising U. S. tariffs are beginning to affect New Zealand’ s second-largest export market, adding external strain to our already cautious economy. Together, these shifts are recalibrating the market at its foundations.
And yet, real estate continues to show its durability.
RAY WHITE NOW NEW ZEALAND | 14