Feature article

2025 significant economic and property news so far

Economist weighs in on the 10 most recent events

Kelvin Davidson
Last updated: 17 March 2025 | 5 min read
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AI summary

The 2025 property market is showing signs of a slow recovery. While mortgage rates have dropped, the biggest falls may be over. A buyer's market persists with high listings, but property values are beginning to rise modestly, ending the recent downturn.

Sales volumes are projected to increase, with investors and movers becoming more active. Debt-to-income ratios will be a background consideration, while rents are expected to remain flat. The construction sector also shows signs of bottoming out.

1. Mortgage rates have continued to drop but the biggest falls might be behind us

2. Global conditions remain uncertain and inflation risks are worth watching

3. Weighing up floating/short-fixes versus longer-term rates

4. Little near-term effect from Adrian Orr’s resignation

5. Buyer’s market could prevail for some time yet

6. But property values could begin to rise more consistently

7. Sales volumes to rise and all buyer groups to purchase more properties

8. Debt to income ratio limits will at least become ‘part of the conversation’

9. Rents to remain fairly flat for a while yet

10. Builders to have a slightly better year

Author

Kelvin Davidson Kelvin Davidson
Chief Property Economist, Cotality