WHY SELL NOW? Timing the advantage
DANIEL COULSON CHIEF EXECUTIVE RAY WHITE NEW ZEALAND
Perfect timing in property is elusive. Recognising when conditions are tilting in your favour – before the broader market accelerates – is where the advantage lies, says Ray White New Zealand Chief Executive, Daniel Coulson.
Now in February, homeowners are facing opportunities that are both supportive and finite. Interest rates remain stimulatory, buyer demand is active, and supply is relatively contained. Yet the economic outlook suggests this balance won’ t last indefinitely.
“ Conditions are currently very encouraging for sellers,” Coulson notes.“ Buyer confidence has returned, and access to finance has improved materially, but listing volumes have yet to rise significantly.”
RATE CYCLE HAS A SECOND ACT
Coulson says the recent housing market recovery has been driven by falling borrowing costs. Mortgage serviceability improved, sidelined buyers re-entered the market, and activity lifted across most regions.
However, the next chapter of the cycle is already being mapped. Economic forecasts point to interest rates remaining supportive through 2026, followed by a gradual tightening. By 2027, the pace of increases is expected to accelerate, potentially lifting the Official Cash Rate( OCR) toward restrictive levels.
Coulson says this matters because property markets respond to direction, not just current settings.
“ Low rates don’ t last forever. The buyers active today are benefitting from the most favourable borrowing conditions we’ re likely to see for some time. As rates rise, borrowing capacity shrinks, and that directly influences purchasing power.”
In simple terms, selling while credit is abundant usually produces a deeper buyer pool and stronger competition.
DEMAND IS REAL, DIVERSE.
Importantly, today’ s demand is not confined to a single buyer group. First-home buyers, upgraders, downsizers, and investors are all participating, supported by improving household balance sheets, sentiment, and a stabilising economy.
Resale profitability has recovered, days on market have eased toward long-term averages, and auction clearance rates across many areas are back to levels associated with balanced or rising markets.
“ The demand we’ re seeing now is needs-based. Kiwis who delayed decisions during uncertain years are now moving forward because life doesn’ t stand still.”
Coulson says these factors are creating a broader and more resilient pool of buyers, particularly for well-presented homes in demand locations.
At the same time, new supply in established suburbs remains constrained. Planning rules, infrastructure requirements, development levies, and land scarcity continue to limit what can realistically be built – a trend reinforced by recent Auckland Council survey data indicating residential developers are scaling back projects, particularly in brownfield areas, due to rising costs.
Sources: Bloomberg, REINZ, Westpac
“ As a result, quality homes in desirable neighbourhoods face limited competition from new builds. You can’ t easily create more blue-chip locations. Existing homes effectively become the supply.”
RAY WHITE NOW NEW ZEALAND | 6