Let us be your go-to for all things business, investments and property. Take a look at our helpful podcasts, webinars, articles, guides and more. View Hub
Let us be your go-to for all things business, investments and property. Take a look at our helpful podcasts, webinars, articles, guides and more. View Hub
When everyone else is sitting still, opportunity knocks louder for those willing to move. In this Q1 property market update, we break down why we’re confidently buying property in 2025—even as much of the market hesitates.
Market Misreads: Uncertainty vs. Opportunity
Despite early optimism in 2025, the property market hasn’t bounced back in the way many expected. Interest rates have begun to fall, we’ve technically exited a recession, and buyers are itching to do something after years of waiting. Yet sentiment remains flat. Political and economic overlays, both local and global, have stirred up uncertainty, keeping many would-be buyers and sellers on the sidelines.
Add in the bright-line rule changes and a glut of listings hitting the market, and you’ve got a transactional mismatch—plenty of stock, but cautious buyers. As a result, sales are happening (up 12% year-on-year), but properties are taking longer to move and price growth hasn’t followed suit. It’s a classic buyer’s market.
Why We’re Buying Anyway
This Q1 property market update isn’t just a commentary—it’s a roadmap for action. Interest rates have dropped from nearly 8% to below 5%, and we believe there’s still room to move. That shift brings more than cheaper money; it increases borrowing capacity and builds long-term affordability. It’s one of the clearest signs that, while conditions may still feel uncertain, the fundamentals are quietly lining up.
Markets are forward-looking. And when fear keeps the masses frozen, history shows that those who step in are often seen as “lucky” in hindsight. We’re not buying because everything is perfect—we’re buying because everything is on sale.
Practising What We Preach
At Lighthouse, we believe in walking the talk. From multi-unit purchases to regional investments in Wellington and beyond, we’re applying the same strategies we recommend to clients: buying undervalued assets, improving them, and holding for the long term. No shortcuts. No hype. Just disciplined execution and smart financial planning.
The current conditions aren’t just acceptable—they’re attractive for long-term buyers. And if the fundamentals stack up, why wait? The perfect moment doesn’t exist, but a good deal in a slow market often does.
Key Takeaways
Falling interest rates: From 7.99% to 4.99%, with further drops expected, increasing borrowing power.
Buyer’s market dynamics: High stock levels and low urgency mean more choice and negotiating power.
Regional momentum: Areas like Marlborough and Canterbury saw their strongest March since 2020.
Forward-looking strategy: Good deals come when others hesitate—not when sentiment is high.
Smart investing: Focus on fundamentals—buy undervalued, improve, hold, and grow wealth over time.
Next Steps:
Buying in a slow market might be your smartest move. If you’re thinking of buying, get in touch with Lighthouse Mortgages. We can help you with the strategy, the numbers, the pre-approval—right through to the purchase.
If you’d like to learn more, check out these other episodes below.
For a no obligation discussion to see how we can help you on the path to wealth, please contact us.
Disclaimer:
The information in this article is general information only, is provided free of charge and does not constitute professional advice. We try to keep the information up to date. However, to the fullest extent permitted by law, we disclaim all warranties, express or implied, in relation to this article – including (without limitation) warranties as to accuracy, completeness and fitness for any particular purpose. Please seek independent advice before acting on any information in this article.
