SYDNEY: New Zealand house prices edged slightly higher in September, and the market anticipates additional interest rate cuts will stimulate demand for a gradual recovery in 2025, the Real Estate Institute of New Zealand (REINZ) said on Tuesday.
Seasonally adjusted median house prices rose 0.2 per cent from August but dipped 2.3 per cent from a year earlier, REINZ data showed. Seasonally adjusted national home sales volumes improved 0.4 per cent from August and 2.4 per cent from September 2023.
"After (the rate cut), the market is expected to see more activity from those who are ready to buy, reinforcing the optimism in the market, and this will likely be reflected in the coming months' property reports," REINZ Chief Executive Jen Baird said in a statement.
New Zealand's central bank cut its benchmark rate in August, the first decrease since March 2020 and further slashed rates by another 50 basis points last week. It said policy is still restrictive even though inflation has returned to target, prompting markets to bet on yet more aggressive easing.