FURTHER OCR CUTS EXPECTED
The Reserve Bank( RBNZ) has signalled further reductions to the Official Cash Rate( OCR) into 2026, driven by a soft labour market and subdued economic growth.
Coulson says these expectations are already shaping sentiment, as lower OCR settings directly influence mortgage lending rates.
“ Buyers today are extremely analytical and forward-looking. They know that if they purchase now, their servicing costs are likely to reduce over the life of their loan. That optimism is fuelling activity, and activity is what creates competitive pressure for sellers.”
First-home buyers have been particularly active, encouraged by strong long-term fundamentals and immediate affordability. The latest lending figures from the central bank show record levels of low-equity lending to this buyer group, and affordability at its best point in the last four years.
Coulson says first home buyers have been one of the brightest news stories in 2025, as they transact in volume rather than waiting on the sidelines.
“ Smaller-scale investors are also coming back to the fray, focusing on the lower end of the market where yields are improving. Activity from both groups reinforces the depth of demand, giving sellers confidence that their properties are being targeted by motivated buyers.”
Taken together, the fundamentals continue to make a compelling case that will drive residential decision-making, with forecast price growth, choice, affordability, and bank lending appetite key factors.
“ The current market is balanced, but it won’ t stay this way. Sellers who wait for prices to rise may find themselves competing with more stock and more noise. While the sector is not yet booming, it is moving with increasing confidence.
“ For homeowners considering their next step, the present conditions( and those of tomorrow) offer something valuable in real estate – clarity. Clarity, when recognised early, can be the key to securing the best outcome in the sale of your home.”
RAY WHITE NOW NEW ZEALAND | 9