Market Update February 2025

A time for exciting opportunities

Across New Zealand, sales were up 17.5% year-on-year, rising from 3,212 to 3,774 properties sold. While numbers were lower than December, this follows the usual seasonal pattern. The national median price dipped slightly by 1.7%, sitting at $750,000 (down from $763,000 in January 2024).

Market Overview – Wellington & Lower Hutt

Locally, Wellington’s market is showing signs of growth, with its median price increasing by 1.3% year-on-year to $750,000. Buyer confidence is improving, particularly among first-home buyers taking advantage of stable lending conditions.

In Lower Hutt, the median sale price was $695,000, with 64 properties sold and a median of 55 days to sell. Time on the market is still slightly extended and open home attendance varies where properties that remain unsold are typically getting significantly less visits. Salespeople are reporting strong buyer interest in new listings to the market, particularly among first-home buyers taking advantage of market conditions.

Current Market Sentiment & Trends

• First-home buyers remain the most active group, particularly in Wellington and Lower Hutt, as they take advantage of improving interest rates and a good selection of properties.
• Investors are more selective, with some selling properties, creating opportunities for owner-occupiers.
• Price-sensitive buyers are looking for well-presented, competitively priced homes—properties that "meet the market" are selling faster.
• Open home attendance is strong, with increased enquiry levels reported across key suburbs.

Buyer & Seller Trends to Watch in 2025

• Affordability & Interest Rates: Interest rates remain a key factor, with buyers weighing their options. Those ready to buy are prioritising well-priced properties in desirable locations.
• Sustainable & Energy-Efficient Features: Homes with solar panels, double glazing, and insulation are attracting attention due to perceived long-term cost savings.
• Suburb Shift: More buyers are considering Lower Hutt and outer Wellington suburbs for affordability and lifestyle, rather than competing in the central city.

Impact of the Latest OCR Announcement

On February 19, 2025, the Reserve Bank of New Zealand (RBNZ) reduced the Official Cash Rate (OCR) by 50 basis points, bringing it down to 3.75%. This decisive move aims to stimulate the economy amidst moderating inflation and global uncertainties. This reduction in the OCR is expected to have a positive impact on the housing market:

• Several banks have already responded by lowering mortgage rates, making home loans more affordable for buyers.
• Lower borrowing costs are likely to boost buyer confidence, encouraging more first-home buyers and owner-occupiers to enter the market.
• With reduced financing costs, investors may find renewed opportunities, potentially leading to increased activity in the property market.

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