New Zealand House Prices Set for a Rebound: Experts Predict 6% Rise Next Year

New Zealand house prices are expected to reverse their recent decline and rise by 6% next year as interest rate cuts from the Reserve Bank of New Zealand take effect. Despite aggressive interest rate hikes, the housing market did not crash but was tamed. Experts predict improved affordability for first-time buyers.

New Zealand house prices are expected to recover and rise by 6% next year, driven by interest rate cuts from the Reserve Bank of New Zealand, according to a Reuters survey of property strategists.

Despite significant interest rate hikes, home prices remain just 19% below their November 2021 peak, largely mitigating a potential market crash. Analysts forecast an average 1.0% price rise this year, with projections ranging from -4.0% to 2.5%.

The recent 25 basis points cut in interest rates by the RBNZ, and a further forecast of 50 basis points reduction this year, are expected to improve purchasing affordability for first-time home buyers, signaling a renewed confidence in the housing market.

(With inputs from agencies.)