MORE GOOD NEWS!

This time last week we were reacting to the Reserve Bank's 50 basis points cut to the official interest rate - taking it down to 4.75%   Since then we have seen banks correspondingly reduce their mortgage rates.

This week, the fall in the annual CPI inflation rate to 2.2% - it's lowest level since March 2021 - and falling within the RBNZs target band of 1 to 3 percent, suggests a further cut to our official interest rate in late November.

What does this mean as far as the real estate market is concerned?

"Cheaper Money" (lower mortgage rates) typically brings more buyers into the market, meaning that in 2025 we should see more demand for property.  That said, this year, we have heard that many potential vendors have decided to delay putting their property on the market until next year, which could well balance the demand with more supply.  

Always difficult to predict exactly how things will turn out, however, we may well see a more active market next year!