That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
NZ Property Market 2025: Stabilization After the Storm
Are Kiwi house prices finally turning a corner in 2025? After weathering an 18% decline from the 2021 peak, the market is showing tentative signs of stabilization with national average prices inching up 0.2% to $903,000. But does this modest growth signal a recovery worth betting on?
The regional story reveals fascinating contrasts across New Zealand. Auckland values slipped 0.1% to $1.2 million – welcome news for potential buyers but concerning for homeowners hoping for capital gains. Meanwhile, Queenstown prices remain stratospheric at $1.81 million despite a slight dip, highlighting how location continues to dictate market dynamics. These variations emphasize why understanding your local market is crucial before making property decisions.
What's driving these changes? Major financial institutions are cautiously optimistic, with forecasts ranging from ASB's bullish 9.4% growth prediction to the Reserve Bank's more conservative 3.79%. Interest rate cuts (down 175 basis points since August) are providing breathing room for borrowers, though housing affordability remains a significant hurdle for many Kiwis. The persistent housing shortage continues to prop up prices despite economic headwinds. For potential buyers weighing their options, this could represent an opportunity – if you're financially prepared and secure in your employment. Join us every fortnight for our webinar where we dive deeper into these trends and answer your pressing property questions. Your smart financial decisions start with staying informed.
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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% lower than the same period last year.
Speaker 1: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.
Speaker 1:Major banks have varying forecasts for house prices growth in 2025. So I looked against the four big banks ASB predicts a 9.4% 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.
Speaker 1: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, 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.
