With the latest CPI inflation data from Sats New Zealand coming in at 3.3% for the 2nd quarter - lower than predicted by the Reserve Bank - plus market data showing low confidence in the economy, a reversal in immigration numbers, declining retail spending figures, and a stalling in house prices, the chances are high for an Official Cash Rate drop in 2024, with the banks likely to move sooner.
As Shaun Taylor, Professionals CEO, says, “Most economists and market commentators are now all predicting a drop in the OCR in November, and it is highly likely that the banks will go sooner. There is already a big gap between the advertised rates and what you can negotiate directly with the banks. It will be a busy summer, and if you can afford the current rates for a short period of time, now is a great time to buy.”
The latest REINZ data from June show a reduction in activity in winter, reflecting the economic conditions and high-interest rates. The national median price decreased by 1.3% year-on-year, from $780,000 to $770,000, and saw no change compared with May 2024. For NZ, excluding Auckland, the median price was up slightly by 0.4% year-on-year, from $682,500 to $685,000, but decreased 0.6% compared to May 2024, from $689,000 to $685,000.
This makes for interesting times. As Shaun continues “June was slow and low, as the economy has had an impact on every industry in the country, and we have seen house values drop. The Reserve Bank’s high OCR has had its desired effect on the economy, and some economists believe we are currently operating within the inflation guidelines of 1%- 3%. I believe the Reserve Bank will make at least one cut this year, and based on the banks’ economists, so do they. The banks have a lot of margin to play with in their one to two-year rates and are likely to move ahead of the Reserve Bank. We have a lot of stock available in the market, so the good news for buyers is that prices will be fairly stable for a while, but we will see a new growth cycle kick in and values will increase soon after the rate drops.”
With activity forecast to increase here are our top 6 tips to get your home ready to sell in spring:
1. Spring Clean Thoroughly
Start with a complete spring clean to make your house shine. Clean glass doors and windows inside and out, remove cobwebs, and give everything a good dusting and vacuum. Wash curtains, dust blinds, and clean lighting fixtures. Polish doorknobs, mirrors, switches, taps, and fittings. Wipe down cupboards and all surfaces, including closet doors, shelves, and drawers. Pay special attention to kitchens and bathrooms, and consider having your tiles and grouting professionally cleaned.
2. Boost Street Appeal
First impressions count, so make your exteriors stand out. Tidy up your front and back garden by clearing away any clutter. Waterblast driveways and garden pathways, and remove any oil stains. Rake dead leaves, prune dead growth, and do a thorough weeding. Have your roof and gutters professionally cleaned. Trim or remove large bushes and tree branches to clear the exterior view. Remove any shabby outdoor items like rusting deck chairs. Repaint fences, exterior walls, and the letterbox for a fresh look. Add flowers and greenery for a vibrant touch, and place statement pots and plants at the entrance.
3. Declutter and Depersonalise
Declutter your house by throwing away or donating items you no longer use. Remove personal effects to make your interiors look more spacious and allow potential buyers to envision the house as their own. Take down family photos, souvenirs, and accolades. Consider putting oversized or worn-looking furniture into storage. Ensure any remaining items, like clothing in closets or plates in cupboards, are in good condition and neatly arranged.
4. Make Necessary Repairs and Maintenance
Look at your home objectively and identify any flaws, defects, or damage. Repair leaky taps, loose doorknobs, and faulty light switches. Apply a fresh coat of paint to damaged walls and consider professional carpet and floor cleaning. For timber flooring, think about having them re-stained.
5. Consult a Local Professionals Salesperson
For expert guidance, consult your local Professionals Real Estate Salesperson. They will work closely with you at every step, ensuring your property is staged and prepared correctly. They can provide an accurate Market Appraisal for your home and help you navigate the entire sales process smoothly. Contact your local Professionals Salesperson today to get started!
6. Plan Your Next Steps
Once you have got your house in order, you use our tool to work out your next steps to get you and your finances sorted here.
