An anticipated boost in buyer confidence following last month’s cut in the official cash rate (OCR) by the Reserve Bank of New Zealand (RBNZ) has been quick to materialise, resulting in an uptick in buyer activity.

Data from realestate.co.nz shows that following the cut on 14 August, which was the first in four years, the market quickly responded.

In the 14 days following the RBNZ announcement, there was a noticeable surge in buyer activity compared to the two weeks before it. Residential listing enquiries increased by 8.5% and 6.2% more people saved a search so they would be notified about new listings.

While buyer interest jumped, the national average asking price for houses across the motu fell by 0.5% to $844,595 in August. While this was the lowest average in three and a half years and down a 3.4% from August 2023, national houses prices continued on the general flat trend of the past 18 months.

Across Aotearoa new listings increased by 8.1% year-on-year in August, going up in all regions except Nelson & Bays, Northland, and Coromandel (with decreases of 18.1%, 11.1%, and 5.9% respectively). However, healthy house stock levels started to soften, dipping below 30,000 homes for the first time in six months, realestate.co.nz research showed.

Ian Keightley, Head of Operations, Raine & Horne New Zealand said the boost in buyer interest was expected and continued to urge buyers still sitting on the sidelines to get into the market before competition for the best properties increased.

“The rise in new listings suggests that more vendors are viewing now as a favourable time to sell, with increased buyer interest amid continuing house price stability. Buyers can benefit from extensive choice in the market as well as lower interest rates, which are expected to fall further.

“I would advise buyers not to wait for further interest cuts as the market could leave them behind. There are indications the market has bottomed, and we are entering a new phase. Further cuts are likely to lead to more upticks in house prices, especially if house stock levels continue to soften.

“Our Raine & Horne New Zealand offices are reporting a strong start to the spring sale season, and we could see this maintained throughout the summer and into autumn if buyer confidence continues to grow.

“Buyers need to understand it is time in the market that pays dividends rather than trying to time the market which is difficult to always get right,” Ian Keightley said.

Whether you want to sell or buy a property, don’t hesitate to contact your local Raine & Horne office.