A message from our chief executive
Dear Property Owner,
Spring has a way of exposing indecision. Gardens, homes, and other administrative matters all demand attention at once – and inaction quickly stands out.
After two years marred by hesitation, New Zealand’ s housing market is entering a season not defined by speculation, but decision-making. Buyers are stepping forward, sellers are returning to the table, and policymakers have cleared the air with one decisive move of their own – the Reserve Bank of New Zealand’ s( RBNZ’ s) 50 basis point cut to the Official Cash Rate( OCR).
The result isn’ t likely to be exuberance to year-end, but it is clarity, allowing households to plan with confidence rather than caution.
October’ s half percentage point reduction to the OCR, followed by expectations of a further quarter percentage point reduction later this month, has commentators closing the book on two years of tightening policy.
Mortgage lending rates have moved quickly to follow, with 18-month terms now the lowest across major lenders. Undoubtedly, borrowing costs are at their most favourable in almost two years, and with the next rate-rise cycle not forecast until 2027, households and investors suddenly have a window of real opportunity.
The immediate effect is subtle but significant. House prices are stabilising after a winter dip. Days to sell have shortened, and auction clearance rates are lifting – signalling a market moving forward.
Latest housing data points to gentle monthly increases in national values – modest gains that mark early stages of recovery.
Meanwhile, the fundamentals of ownership are improving. Inflation in construction and maintenance costs continues to ease as industry capacity rebuilds. Insurance premiums are holding steady nationwide – the first sustained pause since 2023 – and much-publicised council rate increases have moderated from last year.
The cumulative effect is relief for homeowners: lower financing costs, manageable expenses, and clarity for the road ahead.
Does this mark the start of a new growth cycle? The answer is almost. Economists expect national values to rise by one per cent over 2025, accelerating to around five per cent in 2026 as the broader economy gains momentum.
This is the foundation for a prosperous new year.
To help you navigate the next few months with confidence, our Ray White network’ s strength lies in its depth – more than a century of relationships, data, and local expertise that allow us to read these turning points early and act decisively for our clients.
The months ahead promise a blend of clarity and increasing competition. For those ready to move, the opportunity is already here, and in a market gaining its footing, confidence may well be the most valuable asset of all.
Please enjoy our 86 th edition of Ray White Now.
Regards
For buyers, this may well be the sweet spot. Lending is cheaper, choice is available, and competition is measured rather than manic.
For sellers, confidence continues to grow, underpinned by genuine demand and a renewed sense of liquidity.
Across our Ray White network, we’ re seeing these dynamics translate into busier open homes and stronger enquiries, particularly in the South Island, with Canterbury our reigning‘ good news story’.
Daniel Coulson Chief Executive Ray White New Zealand
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