STATE OF PLAY
After two years of contraction, the housing market has found equilibrium. Values have steadied, buyers are back in play, and monetary policy is finally working in households’ favour.
“ The cost of borrowing has dropped, prices have steadied, and the distance between buyer aspiration and seller expectation has narrowed to its smallest gap in years.”
Daniel Coulson, Chief Executive, Ray White New Zealand
The Reserve Bank of New Zealand’ s( RBNZ’ s) 50 basis point cut to the Official Cash Rate( OCR) in October, with a further 25-point trim expected at the last call for the year on 26 November, has reduced borrowing costs to their most favourable level in nearly two years.
Source: RBNZ
Mortgage rates have responded swiftly: the 18-month fixed term now sits below( most) and two-year benchmarks, flagging the potential bottom of the lending cycle.
“ For sellers, this shift alters the psychology of decision-making, and buyers who spent the last year waiting for certainty now have it – and they’ re responding.”
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