WHY SELL NOW?
DANIEL COULSON CHIEF EXECUTIVE RAY WHITE NEW ZEALAND
One of the most surprising developments in New Zealand’ s economy this year is not where activity has weakened, but where it has endured, says Ray White New Zealand Chief Executive, Daniel Coulson.
Consumer spending has slowed, business confidence remains subdued, construction activity is contracting, and financial markets have rapidly shifted from discussing lower interest rates to preparing for higher ones.
Through that lens, residential property has proven unexpectedly resilient.
While the wider economy has struggled to generate lasting momentum, buyers and sellers have continued to engage with the housing market at a level that many economists wouldn’ t have predicted six months ago.
Understanding why matters – particularly for homeowners considering whether now is the right time to bring a property to market
HOUSING AND THE ECONOMIC DIVERGENCE
While economic conditions vary markedly across the country, with export-led regional economies outperforming and many metropolitan centres facing slower growth, the prevailing national narrative remains cautious.
Households are feeling the effects of cost increases, spending growth is moderate, and many businesses report challenging trading conditions. Major banks have revised their expectations for economic growth lower, while financial markets are increasingly pricing the possibility of further Official Cash Rate( OCR) increases as inflation concerns persist.
Ordinarily, such conditions would be expected to place considerable pressure on residential property activity. Instead, the housing market has ploughed ahead, with a heartening degree of stability.
While values have softened in some locations, and buyers have become more selective, the market has continued to function, and well. Properties are selling, our auctions are attracting excellent participation, and transaction volumes are considerably more resilient than broader economic conditions alone might suggest.
“ New Zealand’ s housing market is demonstrating a level of durability that stands out against much of the wider economy.”
Daniel Coulson, Ray White New Zealand, Chief Executive
“ That doesn’ t mean conditions are running hot, but it does suggest that there is a deeper pool of underlying demand than many people appreciate.”
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