Steady signals in a shifting market
Treena Drinnan Chief Agency Officer Ray White New Zealand
As we closed out May, it was clear that the real estate market continued to show signs of steady momentum. Not with complexity but with a building sense of confidence. The core drivers shaping the market remained robust, including the easing of interest rates and increasing affordability.
From my seat as chief agency officer, what we’ re seeing across the country, from conversations with business owners to live market data, is a growing readiness among both buyers and sellers. People are recalibrating their expectations in real time as new economic signals emerge.
This month’ s 25 basis point cut to the Official Cash Rate( OCR) brought it down to 3.25 per cent, and the Reserve Bank( RBNZ) is signalling a cautious path ahead- likely pausing in July before another potential cut in August.
Historically, housing has responded well to monetary stimulus, and although this cycle has seen a more modest acceleration, we’ re still observing upward trends. The earlier OCR reductions were likely factored in well ahead of time by many households, and cost-of-living pressures continue to moderate buyer urgency. But there is no doubt that momentum is building again.
We are seeing it play out in sales volumes, listings, online engagement, and finance activity, all pointing in one direction.
RAY WHITE NOW NEW ZEALAND | 14