Housing Confidence Makes a Rebound

Topic #1:  RNZ 26th of February - Refixing borrowers swamp banks

Topic #2: NZ Adviser 27th of February - Report reveals gender gaps in NZ property ownership

Topic #3: NZ Herald 24th of February - Waiting to fix mortgages in 2026 could cost borrowers more, interest rate analyst says

Topic #4: NZ Herald 24th of February - Housing confidence back to 2020 levels - survey

Topic #5: NZ Adviser 27th of February - Real estate investors reevaluate portfolios – survey

#propertyapprenticenz #investingadvice #mortgagerates #interestrates #rentalproperty #landlording #newzealand #propertymarket 

Transcript

 Hi everyone, I'm Debbie Roberts, Owner and Financial Adviser at Property Apprentice. Join us today for the Week in Review where I talk about current events for the everyday investor and homebuyer. Our topics for this week, topic number one from   📍 RNZ on the 26th of February, refixing borrowers swap, swamp banks.

 Topic number two,   📍 NZ Adviser from the 27th of February, report reveals gender gaps in New Zealand property ownership.  Topic number three   📍 from the New Zealand Herald on the 24th 2026 could cost borrowers more, interest rate analyst says.  Topic number four from the   📍 New Zealand Herald on the 24th of February, housing competence back to 2020 levels, according to a survey.

 And topic number five from   📍 New Zealand Adviser on the 27th of February, real estate investors re evaluate portfolios, according to another survey.  

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So topic number one from RNZ on the 26th of February, Refixing borrowers swamp banks. As interest rates decline, borrowers are increasingly engaging with their home loans, leading to added pressure on banks.

ANZ, the country's largest bank, reported a surge in customer inquiries following the recent official cash rate cut, resulting in longer wait times at its contact centre. One customer, unable to restructure her loan via the app, was directed to call the bank but faced an estimated one hour wait time.  ANZ acknowledged the delays, stating that while the team had been adjusted to meet demand, average wait times were still around 30 minutes.

The bank assured customers it was working to reduce these delays and suggested using secure bank mail via internet banking as an alternative. BNZ also experienced an increase in inquiries, and responded by reallocating staff to high demand areas. Kiwi Bank reported higher call and email volumes, but stated that home loan application processing times remained unaffected.

The bank continues to invest in its Adviser channel by hiring new staff, upgrading systems, and launching fast pre-approvals, aiming to provide loan decisions within 48  hours. Additionally, KiwiBank is developing a digital tool to  streamline loan applications through its decision engine, aiming to improve efficiency for both Advisers and customers. 

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Topic number two from the New Zealand Adviser on 27th of February, report reveals gender gaps in New Zealand property ownership. CoreLogic's latest Women in Property report highlights ongoing gender gaps in property investment across New Zealand as of early 2025. Despite a strong interest in home ownership, financial barriers continue to limit women's participation compared to men.

Men remain dominant in investment property ownership with 14 percent owning rental properties compared to 11 percent of women. Their portfolios also tend to be more diverse.  Regional trends show higher female ownership in more affordable areas like Kawerau and Whanganui, while investment heavy regions such as Queenstown and Mackenzie report lower female participation. 

Owning property is a key driver of wealth, yet economic challenges disproportionately impact women. While 61 percent of female respondents value property ownership, many earn below $70, 000 annually, limiting their investment capacity. Women also show different property preferences, favouring single storey homes over apartments or townhouses, which may restrict diversification opportunities.

Additionally, fewer women plan to hold properties long-term, reflecting increasing financial pressures. The report suggests improving financial literacy programs and addressing the gender pay gap, currently at around 9%, to enhance women's ability to invest in property. Policymakers are encouraged to implement strategies that boost women's financial capacity, promote higher paying career opportunities,  and support access to diverse property investments.

If you'd like to learn more about investing in property, From another female,   📍  📍 join me at one of our free events called How to Succeed with Property Investing. I'll discuss strategies for successful investing from my, my perspective as an experienced property investor and a financial Adviser. And these events are available live online. 

Check out propertyapprentice. co. nz for upcoming dates and register today. We don't sell property, so it's all about increasing your knowledge to reduce your risk.  If you've already been to one of our free events   📍  📍 and you'd like to find out more about how we can help you to reach your financial goals, you can also book a no obligation phone call or meeting with my husband Paul Roberts via the website.

And that's propertyapprentice. co. nz.   

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Topic number three from the New Zealand Herald on the 24th Waiting to fix mortgages in 2026 could cost borrowers more, interest rate analyst says. Following last week's 0. 5 percent drop in the official cash rate, the OCR, further cuts are expected, but a rates analyst cautions that they may not significantly reduce borrowing costs.

Sean Keane, Chief Asia Pacific Strategist at J. B. Drax Honore,  I'm not sure if that's how it's pronounced, but that's how it looks like it's pronounced, so I'll go with that, explained that financial markets had already factored in expected rate cuts, making it uncertain whether an additional 50 basis point reduction would meaningfully lower mortgage rates.

Keane warned that borrowers on floating rates waiting for fixed rates to drop might miss out on potential savings.  He noted that while the average two year fixed mortgage rate had already fallen by 1. 35 percent before the recent Reserve Bank cut, the average floating rate had only decreased by 0. 6%. He expected more borrowers to switch from floating to fixed to take advantage of lower rates.

Having monitored the Reserve Bank for years, Keane pointed out that last week's cut marked the 200th  OCR decision since the tool's introduction in 1999. He observed that the bank tends to maintain its course once it starts adjusting rates, aligning with its forecast of lowering the OCR to around 3 percent by year end.

Keane also highlighted concerns over the quality of official economic data in New Zealand. He noted that the Reserve Bank was increasingly relying on real time market surveys and indicators instead of traditional data sources to guide its decisions. So what we've seen in the days following the OCR has actually been that most banks have reduced their floating interest rates and they've also been competing on some of the shorter term rates as well.

So it is certainly interesting times when it comes to rates on your mortgages,  trying to make a decision on your own could be a little bit difficult. So, you know, you should absolutely have a good chat with your mortgage Adviser before you make a decision.  

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 Topic number four from New Zealand Herald on the 24th of February, housing confidence is back to 2020 levels according to a survey.

The latest ASB housing confidence survey shows a net 33  percent of respondents expect house prices to rise, returning to optimism levels last seen in 2020.  Meanwhile,   a net 23 percent believe it's a good time to buy, with interest rates expected to decline. Canterbury saw the most significant confidence  boost, with a net 38 percent predicting price increases.

That's an increase of 25 percent in the previous quarter. However, confidence in buying remained moderate, with a net 23 percent nationwide believing now is a good time to purchase, which is a slight increase from 20 percent in the third quarter.  Auckland in particular showed small signs of hesitation.

for your time and attention. ASB Chief Economist Nick Tuffley noted that expectations for falling interest rates had slightly weakened, with a net 51 percent anticipating lower rates compared to 57 percent previously. This shift occurred before the Reserve Bank in New Zealand cut the official cash rate to 3.

75%. He expects a slower pace of rate cuts moving forward, in line with the Reserve Bank's predictions  and forecasts.  And Tuffley described the current market as a sweet spot for buyers with falling interest rates, high property supply and subdued prices creating favourable conditions. However, he acknowledged that the abundance of homes for sale might be causing potential buyers to hesitate.

Which doesn't make sense to me. Means you've got more choice in the market and less competition. Win-win, right, when it comes to buying properties. Recent data from the Real Estate Institute supports this, which have shown an increase in new property listings, while sales continue to decline. Despite growing optimism, some uncertainty remains, and where there's uncertainty, There's potential to make a profit.

Tuffley pointed out that global factors such as the potential inflationary impact of Donald Trump's re election in the United States could be adding to buyer caution. However, he expects hesitation to fade as the year progresses. My opinion is that buyer hesitation is going to fade when the economy starts performing much more strongly than it currently is.

And there are  Small signs of light at the end of the tunnel when it comes to that as well.  

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Topic number five for this week in review from the New Zealand Adviser on the 27th of February, real estate investors re evaluate their portfolios according to a recent survey by Crocker's property management and economist Tony Alexander.

Based on responses from 287 residential property investors, it reveals a growing trend of investors considering downsizing their portfolios, and that's a notable shift in investment strategy. Investor confidence in potential house price increases has strengthened, yet optimism about further interest rate cuts has declined.

This mixed outlook reflects ongoing uncertainty despite rising business confidence and renewed investor activity. Securing quality tenants can remain a challenge, but banks have become more open to financing, marking an improvement from previous restrictive lending conditions. The survey shows that 35 percent of investors are considering selling.

That's an increase from 29 percent in January, and it's the highest level since mid 2021. This shift suggests a cooling period in investor engagement, potentially influencing market dynamics.  While most investors still plan to hold their properties for at least 10 years or indefinitely, this percentage has dipped from 57 percent to 51 percent in the past month.

This gradual decline indicates growing concerns about long term investment viability in the changing market. Despite market shifts, investors continue to favour existing properties over new builds, with 74 percent opting for pre owned homes.  This trend is driven by an oversupply of newly built townhouses, particularly in Auckland and Christchurch.

Investor caution is also reflected in rental strategies. Only 52 percent plan to raise rents, that's down significantly from 80 percent early last year. The average planned rent increase is 4. 4%, highlighting a more measured approach in response to economic conditions. Landlords are seeing greater support from banks with a net 11 percent reporting increased access to financing.

That's an improvement over last year's more restrictive lending environment and certainly something that we've seen since the OCR started to come down and banks have relaxed their test rates. This easing of credit may help sustain investment activity moving forward.  Investors are increasingly worried about rising council rates and insurance costs, particularly as external factors like climate change and global market fluctuations drive up expenses.

Maintenance costs remain another pressing concern, adding further pressure on investment returns. My thoughts on this are that potentially the number of people who are considering selling could be Purely because people are downsizing for retirement. So I think that's something that can't be ignored. We do have an aging population and a lot of our baby boomers did invest in property.

And, uh, you know, they might've owned those properties for 30 years or more by now. So the fact that they're ready to retire, downsizing their portfolio shouldn't be a huge surprise. I don't have any, Particular figures on that to say how many of the people that we're considering selling, are in that age group, but I would suggest there would be quite a few.  With investor strategy shifting and market dynamics evolving,

now is the time to gain expert insights and make informed decisions about increasing your property portfolio or starting your property portfolio.    📍  📍 Join us at one of our free How to Succeed with Property Investing events. And these events are available online so it doesn't matter whereabouts you live in New Zealand.

They're live and they'll enable you to gain valuable insights and strategies tailored to today's market conditions. So whether you're an experienced investor or just getting started looking at purchasing your first home even, this free session will equip you with the key tools and insights to make confident, informed decisions.

Don't miss out. Register today and take the next step towards achieving your financial success. In our free events, I'll also tell you more about how we help our clients to achieve their finance, their investing goals and financial goals. So if you're interested in finding out more about what we do and how we could help you, visit propertyapprentice.

co. nz today and register for one of these free events.     📍  📍 If you've already been to one and you'd like to know more about how we can help you on your journey, book a no obligation phone call or meeting with my husband, Paul Roberts, through our website, and that's propertyapprentice. co. nz.  Thanks for listening.