Why sell now ?
Daniel Coulson Chief Executive Ray White New Zealand
Three months into the new year , we are nurturing the shoots of a fresh start and a defining chapter for New Zealand ’ s property market and ongoing economic rebound .
Following volatility and disruption , both at home and abroad , the tide is turning , and for residential property owners contemplating their next move , recent conditions have never been more compelling .
This shift is critical for sellers . A more substantial buyer pool means better prices , shorter timeframes to sell , and a diminishing need for price reviews . The balance of power is shifting , making this window an opportune time to attract serious buyers before the market fully transitions into a seller ’ s domain .
ECOMOMY IN MOTION
The Reserve Bank of New Zealand ( RBNZ ) has boldly cut the Official Cash Rate ( OCR ) by 50 basis points this February – a move that , while widely anticipated , has a significant bearing on residential decision-making .
Accompanying the recent decision to reduce the OCR to 3.75 per cent , the Monetary Policy Committee signalled more rate cuts , sooner , which would slash the OCR down closer to three per cent by the end of the year .
This decisive take on monetary policy has been designed to stimulate the economy , ease the cost of borrowing , and boost market confidence for the months ahead as interest rates decline and borrowing becomes more affordable , enticing buyers back into the market .
BUYER CONFIDENCE REBOUNDS
Hesitation is out , confidence is in . Nationally , Ray White saw 1,109 property sales and $ 1.07 billion in value sold during February , as well as unprecedented demand from homeowners looking to capitalise on a market with new vitality .
In February , 2,368 new listings came to market across the Ray White network , helping to achieve an all-time high in listing inventory of 6,930 . At the same time , auction clearance rates are continuing to climb , reflecting apparent confidence and an increasingly competitive operating environment .
Real Estate Institute ( REINZ ) data also reflected the third consecutive monthly increase in its Housing Price Index ( HPI ) and a surge in new listings . The sales-to-listings ratio – a key indicator of market demand – has stabilised recently , suggesting that house price momentum is on a rewarding trajectory .
Source : REINZ , realestate . co . nz , Macrobond , ANZ Research
THE RIPPLE EFFECT
A home sale is rarely an isolated transaction – it triggers a ripple effect in the economy . When sellers achieve desirable prices , they are more likely to reinvest , whether through purchasing another property , funding lifestyle changes , or supporting other family members .
This chain reaction fuels broader economic activity , from home renovations to retail spending , reinforcing market momentum .
For those biding their time in the hope of a rapid price rebound , data reflects a different reality .
Analysts suggest that while market conditions have and will continue to strengthen , the return to peak 2021 pricing levels is unlikely to occur until 2028 or later , given new controls that limit buyers ’ ability to exceed acceptable debt levels .
Seven years is a long time for sellers to wait , and in a market where flexibility and opportunity are key , the decision to act now could be the difference between moving forward and being left behind .
RAY WHITE NOW NEW ZEALAND | 7