NEW ZEALAND FOLLOWS THE USA

Last month the US central bank cut interest rates by a bigger-than-expected 0.5 percentage points in its first reduction in more than four years.

Similarly, the New Zealand Reserve bank cut our official cash rate by 50 basis points to 4.75% this week. Our lowest since February 2023.

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

As banks correspondingly lower interest rates, people looking to acquire property have a higher "purchasing power". This typically results in more buyers entering the market and more competition for property.

If the supply:demand ratio (properties:buyers) changes, then more demand may result in a subsequent increase in property prices.

As we are now in mid October, we expect to see an increase of properties on the market later this summer season. As always, we will keep you posted with subsequent sales results.