THE CASE FOR URGENCY
With several key indicators trending positively, it’ s tempting to wonder whether things might improve further by waiting. Coulson, however, urges caution.
“ Waiting isn’ t always winning,” he says.“ We’ re in a moment where conditions are aligned – supply remains elevated, rates are favourable, and confidence is building. The risk of delay is that these levers could shift.”
One wildcard is the global economy: U. S. tariff policies – including the recently announced 10 percent tariff on all New Zealand merchandise exports – have introduced fresh uncertainty into the international financial system. This is expected to cost the country up to $ 900m annually, with flow-on effects for regional economies.
“ While the long-term outlook for New Zealand’ s housing market remains rooted in fundamentals – such as interest rates, supply and demand, and employment – macroeconomic instability can influence interest rates, increase borrowing costs, and weigh on business confidence.
Daniel Coulson Chief Executive, Ray White New Zealand
“ While the long-term outlook for New Zealand’ s housing market remains rooted in fundamentals – such as interest rates, supply and demand, and employment – macroeconomic instability can influence interest rates, increase borrowing costs, and weigh on business confidence.
Source: SNZ, Westpac NZ
“ Right now, the OCR is nearing its neutral point, inflation is within the target band, and consumer sentiment is on the rise,” Coulson says.“ But these windows don’ t stay open forever.”
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