The Auckland property market continues to heat up with increased buyer interest recorded in the last month, as prices remain steady. The Reserve bank surprised economists last week, announcing it will leave the Official Cash Rate (OCR) at its current level of 1%.

Here’s what you need to know:

Auckland Market Heats Up – But Remains Steady for Potential Buyers

The latest data from Real Estate Institute of NZ has given indication that activity in Auckland is back on the rise, with figures showing that 2025 homes were sold in the region in October, putting sales activity in Auckland back on par to where it was same time last year. The good news for those looking to buy is that house prices are remaining rather flat, despite rises across the rest of the country. The REINZ House Price Index (HPI), which adjusts for differences in the mix of properties being sold, was up 3.7% across the entire country in the three months to October and up 3.9% compared to October last year, in Auckland however, the HPI declining by 0.1% in October compared to September and remaining down 0.7% compared to October last year. Trade me has also backed up this claim, officially announcing that the property market is “heating up for summer”, with ten of New Zealand’s fifteen regions hit record average asking prices in October, according their internal Property Price Index. Head of Trade Me Property Nigel Jeffries commented that October saw not only a spike in views on property listings, which is matching the amount of houses being listed, “Buyers and sellers sprang into action in October, we saw a surge in demand as well as a spike in new listings. The number of properties for sale on Trade Me rose 9 per cent on September.” Jefferies also indicated that their data was showing signs that the Auckland market was beginning to look more healthy in the last few months, which is great news for buyers, “Prospective buyers in Auckland still have plenty of reason to smile this month with plenty of properties on the market to choose from and lower prices than 12 months ago.”

Reserve Bank to keep Official Cash Rate at 1%

The Reserve Bank surprised economists last week when it announced that it will keep the Official Cash Rate (OCR) at 1%, despite broad expectations that it would be dropped to a low of 0.75%. The RBNZ’s Monetary Policy Committee commented that they were happy with how the original surprise cut from 1.5% to 1% in August had affected the market, and believed it would continue to do so, “The Committee debated the costs and benefits of keeping the OCR at 1.0% versus reducing it to 0.75%. The Committee agreed that both actions were broadly consistent with the current OCR projection. The Committee agreed the reduction in the OCR over the past year was transmitting through the economy and that it would take time to have its full effect.” But some fear that the decision will see banks increase their lending rates, which RBNZ Governor Adrian Orr said that decision will be up to the retail banks to decide, “Really, they have to make commercial business decisions about what they want to do with their customers.”

-Ravi Mehta, from Professional Finance Solutions