Welcome & Housing Market Question

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Kia ora and welcome back to the show . Today we're going to dive into a question on many Kiwis' minds Are house prices still worth it in 2025 ? Whether you're a first-time buyer , an investor or just keeping an eye on the market , let's unpack what's happening After a significant downturn . Since the 2021 peak , when national house prices dropped nearly 18% . 2021 peak , when national house prices dropped nearly 18% We've seen signs of stabilization . Look as of March 2025 , the national average property prices actually rose slightly by 0.2% to $903,000 . However , this remains 2.3%

National Price Trends & Regional Variations

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lower than the same period last year .

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In Auckland , the average house value dipped by 0.1% to 1.2 million , making the first negative quarter since October last year . So not good news for our Auckland buyers . Well , good news for Auckland buyers , not for Auckland sellers . And not all regions are really experiencing the same trends . For instance , the Toa Oranga saw a modest increase of 0.4% to an average of $102 million , while the Queenstown Lakes District experienced a slight decrease of 0.1% , bringing it down to $1.81 million . That still blows my mind how Queenstown prices just out the gate . These variations highlight the importance of understanding the local market dynamics and looking ahead .

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Major banks have varying forecasts for house prices growth in 2025 . So I looked against the four big banks ASB predicts a 9.4%

Bank Forecasts & Market Influences

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increase , westpac anticipates a 7.19% , bnz forecasts a 6.8% growth and ANZ expects a 6% uptick . However , the Reserve Bank offers a more conservative estimate of 3.79 . This projection suggests a cautious optimism , with expectations of modest growth rather than a rapid rebound , so we won't see anything crazy , like it happened in 2020 . Now what is actually influencing the market , you would ask . So several factors are influencing the housing market . One of them is the interest rates the Reserve Bank has reduced the interest rates by 175 basis points since August , aiming to stimulate the market after a near 20% decline from the 2021 peak and also supply and demand . So supply and demand persistent shortage of affordable housing continues to challenge the market , keeping prices elevated despite the recent downturn .

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So a lot of you will be asking me is it worth buying a house in 2025 ? Should we buy it ? Should we just keep renting ? The answer depends on your personal circumstances . With prices stabilizing and interest rates lower , it could be an opportune time for buyers who are financially prepared . However

Episode Wrap-up & Webinar Invitation

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, affordability remains a significant hurdle for many , especially first-time buyers , and especially in an unpredictable job market right now . So hey , that's a wrap on today's housing market update . If you have questions or topics you'd like us to cover , feel free to reach out . Until next time , stay informed and make smart financial decisions , and don't forget to come and join me on my webinar Thursday every fortnight . See you then .