“ There are people, businesses, and resources sitting idle, and there is concern about an entrenched sense of hesitation.
“ To put it bluntly, a lower OCR reduces the cost of borrowing and makes holding off decision-making less attractive.”
Lenders have moved quickly in response; wholesale funding costs have eased, and major banks adjusted rates within days. The practical outcome is meaningful breathing room for many households – lower monthly interest bills and improved borrowing capacity – which is starting to show up in lending and transaction activity.
“ We’ re seeing shades of this shift in the data and out in the field. September’ s sales figures stopped the month-on-month decline in median sale values, and lending approvals have picked up through late winter.
“ Within our network, we are fielding more enquiries, fuller open homes, and steadier auction engagement. These are early, but meaningful signs that the market is becoming more motivated.”
Source: REINZ, RBNZ, Ray White New Zealand Sales activity in the housing market has historically strengthened as the OCR begins to ease, highlighting the cyclical relationship between borrowing costs and transaction volumes.
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