The Real Estate Institute of New Zealand (REINZ) has observed growing stability in the real estate market this spring, with signs of a slow but steady recovery heading into 2025. While market activity remains relatively subdued, there is an increasing sense of optimism that conditions will improve as interest rates continue to soften.
REINZ chief executive Jen Baird points to a noticeable uptick in confidence, especially following the Reserve Bank’s (RBNZ) decision to reduce the Official Cash Rate (OCR) by 50 basis points to 4.75 per cent.
“This reduction is expected to prompt increased activity from prospective buyers, signalling a potential turning point for the market,” Baird said. “As we move into 2025, we anticipate more engagement and transaction volume, particularly as those on the sidelines begin to feel more confident in securing financing at lower rates.”