A message from our chief executive
Dear Property Owner,
As we close out 2025 and look toward an always-welcome summer, the mood across New Zealand’ s housing market feels markedly different from where we started. Following uncertainty, job losses, global conflict and sharper-thanexpected economic adjustments, the past month has delivered a suite of economic indicators pointing firmly in a more positive direction.
Employment concerns are easing, business confidence has risen to an 11-year high, retail spending is picking up, and consumer sentiment has shifted noticeably into more positive territory.
House prices are edging upward, too, with transaction volumes realigning with long-term averages, and mortgage lending rates stabilising at what many believe is the bottom of the rate-easing cycle.
We are undoubtedly seeing the economy and the property market moving in greater synchrony.
Importantly, media coverage has turned more upbeat. When sentiment here begins to shift, it typically means the cycle has already moved further ahead on the ground.
Monetary easing from the Reserve Bank of New Zealand( RBNZ) is working its way through the financial system, improving household balance sheets and making mortgages more affordable as we head toward Christmas.
Greater optimism in the housing market has also reignited the old debate – whether housing should function as an economic backbone. However, in a small, asset-anchored economy like ours, it is challenging to separate the two.
unchanged OCR into 2026, rising gradually thereafter, indicating that we’ re likely at the bottom of the easing cycle.
Concurrently, Kiwis are also seeing aggressive competition among lenders, with cash-back offers and fixed-terms priced to capture market share. This continues to attract investors back to the fore, while homeowners take advantage by refinancing, making plans for their next move – and yes – perhaps freeing up a little extra room for festive spending.
Across the economy, businesses are restocking, port volumes are surging, and job ads have grown for four consecutive months. Put simply: the foundation for 2026’ s economic recovery is in place. Momentum is building as Kiwis head into the holiday season, and the summer market is shaping up with renewed confidence.
For sellers, it’ s the right time to consider a New Year campaign, and for buyers, the best time to act is when the fundamentals are strengthening, not once the market has already moved.
As this is our final edition for the year, I extend my sincere thanks to our clients, customers, and exceptional networks nationwide. Your trust and partnership continue to drive our team, and we look forward to supporting your property aspirations in 2026.
Wishing you a warm and joy-filled summer break. Here’ s to brighter conditions, both in the market and on the beach.
Please enjoy our 87th edition of Ray White Now.
Regards
With such a high proportion of small-to-medium business owners, and business lending often secured against family assets, a confidently performing housing market continues to be essential for consumer confidence, investment, and broader economic momentum.
This dynamic set the backdrop for the RBNZ’ s final Official Cash Rate( OCR) review of the year, which offered few surprises when the Monetary Policy Committee( MPC) decided to reduce the cash rate by a further 25 basis points to a cycle low of 2.25 per cent.
While the overall tone of the announcement was more confident than anticipated, the Bank now forecasts a largely
Daniel Coulson Chief Executive Ray White New Zealand
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