On 28 May, the Reserve Bank made a widely anticipated move: a 25-basis point cut to the Official Cash Rate (OCR), lowering it to 3.25%. This decision reflects concerns about sluggish economic growth and aims to stimulate activity, including in the property market.
“The New Zealand economy is recovering after a period of contraction. High commodity prices and lower interest rates are supporting overall economic activity,” the Reserve Bank (RBNZ) stated.
Encouragingly, most economists now forecast two to three more 25-basis-point cuts this year, which is welcome news for both buyers and sellers.
Market Snapshot: April Data Insights
REINZ April data confirms what many salespeople are seeing: a market that remains active but cautious as winter approaches. Nationally, sales numbers increased 9.5% compared to April 2024, with standout growth in Southland (+28.7%) and Manawatu-Whanganui (+19.0%). However, prices are still under downward pressure, with the national median sale price slipping 1.1% to $781,000.
Auckland continues to see a correction, with a 4.0% year-on-year drop to a median of $1,000,000, while regions like Tasman (+8.4%) and Southland (+6.6%) bucked the trend with solid gains.
Despite increased sales volumes, new listings fell 11.6% compared to April 2024, likely due to seasonal factors and long holiday breaks in April. Inventory remains elevated, compared to previous years, giving buyers options – but fewer fresh listings entering the market.
It’s a buyers’ market for now, but with falling interest rates and limited new stock, competition could intensify, potentially leading to a more balanced market.
Top 3 Tips for Buyers
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It's a Buyers Market: Be Realistic and Decisive
With fewer new listings, competition for well-priced homes is increasing. If you see a property that meets most of your needs, act quickly and make a fair offer. -
Talk to a Mortgage Broker
Banks are competing for quality borrowers. A broker can help you compare lenders and secure a competitive rate, especially as OCR cuts begin to flow through. -
Mid-to-Upper Bracket Buyers: Take Advantage
There are some good opportunities in the higher price ranges. Vendors are more open to negotiation and buyer competition is lower. It’s a strategic time to secure value.
Top 3 Tips for Sellers
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Start with an E-Valuation
Online tools such as our Online Valuation tool offer a quick, data driven estimate of your property’s value. They’re a useful starting point to set your expectations. These tools don’t take into account unique features, current buyer sentiment, or recent comparable sales in your street – which is where professional insight becomes critical. -
Engage a Real Estate Salesperson Early
A Professionals salesperson brings deep knowledge of your local market. We’re on the ground every day and can provide real-time feedback on what’s selling, what buyers are looking for, and how to position your home to stand out. Early engagement helps with pricing, presentation, and strategy. -
Price Realistically
The market is unlikely to rebound quickly. Most indicators suggest that property values will stay relatively flat for the next 6 to 12 months. Overpricing in this environment can result in extended time on market, fewer viewings, and lower offers. Competitive pricing is key.
Final Thoughts
The property market is stabilising, and with interest rates easing, confidence is expected to grow. However, staying informed and realistic is essential. While media headlines can be noisy, your best insights come from trusted real estate professionals.
At Professionals, we’re here to help you navigate this evolving landscape. Whether you’re buying, selling, or just curious about what your property’s value, talk to us – we’re local experts with national strength.
Let’s thrive together in 2025.
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Shaun Taylor
CEO, Professionals Real Estate New Zealand
