Positive momentum builds in property market as cash rate drops.
The latest data from the Real Estate Institute of New Zealand (REINZ) for September 2024 highlights ongoing signs of stability as spring brings renewed confidence for both buyers and sellers. According to REINZ Chief Executive Jen Baird, there’s a growing sense of optimism, with many anticipating further improvements towards the end of the year. Although the rising cost of living remains a concern, the recent easing of interest rates offers hope for a gradual recovery as 2025 approaches.
Baird notes that the Reserve Bank’s decision to lower the Official Cash Rate (OCR) by 50 basis points to 4.75% is expected to stimulate more buyer activity in the coming months. This optimism is grounded in the increasing visibility of positive trends in property market reports.
Market Activity & Buyer Sentiment
Across Aotearoa, the Professionals Group has observed a noticeable increase in market activity as the OCR cuts lead to lower mortgage rates. This shift has resulted in a surge of open home visits and heightened interest in properties across various price ranges. Buyers appear to be seizing this moment to secure homes ahead of what is expected to be the next growth phase in the market.
Despite the general optimism, the national median house price experienced a 2.3% year-on-year decline, dropping from $799,000 to $781,000. However, on a month-to-month basis, the median price rose 2.1% to $765,000 in September. In Lower Hutt, the average sale price stood at $675,000, with 104 total sales and an average of 54 days to sell. Our salespeople have reported increased attention on new listings, indicating a favourable climate for those looking to sell. Sellers are encouraged to work with experienced agents to capitalise on these conditions, leveraging effective marketing strategies to navigate a competitive landscape.
Positive Signs of Stability
With growing inventory and listings, buyers now have more options, allowing them to make informed decisions. The positive momentum is largely driven by both first-home buyers and investors re-entering the market. Vendors have been generally realistic about meeting market expectations, leading to successful transactions. Vendors are mostly favouring deadline sales or tenders over auctions for now, but this could change.
Outlook for the Coming Months
Looking ahead, there is cautious optimism among local agents about the remainder of the year. Baird expects an uptick in listings that could further boost buyer interest. With improving media coverage and sentiment, growing confidence is likely to lead to stronger buyer engagement in the coming months.
In agreement with this outlook, industry leaders emphasise the importance of strategic decisions by sellers in the current market. Collaborating with skilled sales teams can be key to successfully positioning properties as the market gears up for the next phase of growth.
