As we prepare to welcome 2025, it's time to reflect on the changes we've seen in New Zealand's economic landscape and how they might shape the year ahead. With the Reserve Bank of New Zealand (RBNZ) continuing to cut the Official Cash Rate (OCR), and interest rates trending downward, there's plenty of reason to feel optimistic about what's to come.
Here's what you need to know as we step into 2025 – and how you can turn today's opportunities into tomorrow's success.
Where Are Interest Rates Headed?
The RBNZ recently reduced the OCR by 50 basis points, with economists predicting it could drop further into the 3% range over the next year. Lower interest rates are designed to stimulate economic growth by encouraging borrowing and investment, which is great news for homeowners and businesses.
What does this mean for Kiwis?
For homeowners, lower rates mean reduced mortgage repayments, freeing up cash flow for other financial goals. For potential buyers, it makes entering the property market more affordable. Businesses, too, can take advantage of cheaper borrowing costs to invest in growth and innovation.
A Positive Outlook For 2025
While 2024 was a year of economic adjustment, 2025 is shaping up to be a year of opportunity. As interest rates continue to fall, the housing market is expected to stabilise, with increased activity from both buyers and sellers.
Julius says: "With rates heading lower, we anticipate a more balanced property market. This could mean fewer financial pressures for homeowners and a boost for those looking to invest in real estate."
What Can You Do To Thrive In '25?
1. Review Your Mortgage:
Lower rates might mean it's time to refix or refinance. A shorter-term rate could provide flexibility to refix again if rates drop further.
2. Plan Your Next Move: Whether you're buying, selling, or investing, this is a great time to evaluate your financial goals. Speak with a mortgage advisor to ensure you're making the most of these opportunities.
3. Stay Informed: Keeping up with market trends and RBNZ announcements will help you make informed decisions.
Julius says: "At Century 21 Financial, we're here to help you navigate these changes and create a financial plan that works for you. Let's make 2025 a year of progress and prosperity."
Looking Ahead
As we enter 2025, the message is clear: The road to recovery is underway, and Kiwis have the tools to not just survive but thrive. Lower interest rates, a stabilising housing market, and a positive economic outlook all point to a year of opportunities.
If you're ready to make the most of 2025, let's work together to ensure your financial plans align with the evolving market. At Century 21 Financial, we're committed to helping you achieve your goals and create the financial plan of the century.
Here's to thriving in '25!