WHY SELL NOW?
DANIEL COULSON CHIEF EXECUTIVE RAY WHITE NEW ZEALAND
For the past 18 months, waiting has become the default position in New Zealand’ s residential property market. Buyers have waited for mortgage rates to fall. Sellers have waited for prices to rise. Investors have waited for greater clarity around policy.
But waiting is not neutral, says Ray White New Zealand Chief Executive, Daniel Coulson.
“ Conditions continue to change while some Kiwis stand still. The relevant question is not whether every indicator will improve, but whether postponing a decision is likely to produce a materially better outcome.”
The evidence provides no simple promise.
FINANCE HAS REACHED A TURNING POINT
The Official Cash Rate( OCR) has risen to 2.50 per cent, with economists from across the country forecasting the OCR to reach 3.00 per cent by the end of 2026 and remain there throughout 2027.
Mortgage lending rates have already begun to reposition. In July, the median advertised special one-year rate across New Zealand’ s five largest banks was 4.79 per cent, with economists from ANZ( New Zealand’ s largest bank) projecting the equivalent rate to reach circa 5.10 per cent by December.
Longer fixed terms have become comparatively more attractive, allowing some borrowers to exchange a slightly higher rate for greater repayment predictability. However, the broader message is clear: buyers cannot assume delaying a purchase will make the same property cheaper to finance.
“ The prospect of continually falling mortgage lending rates has been removed from the decision. Buyers are now assessing what they can afford under conditions they can see, rather than those they hope might emerge.”
Daniel Coulson, Ray White New Zealand, Chief Executive A SELECTIVE MARKET IS STILL AN ACTIVE MARKET
Despite kicking off with the warmest June on record, New Zealand’ s winter saw softening housing market activity, as shown by the median selling period extending to about 47 days in July.
Prices, however, have been much more stable. The Real Estate Institute of New Zealand( REINZ) House Price Index( HPI) was unchanged in July and only 0.4 per cent lower than a year earlier.
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