BNZ forecasts 7% increase in house prices

26th March 2025 By Staff Reporter | news@propertyticker.co.nz | @propertyticker

BNZ is predicting a 7% increase in national house prices this year.

“It’s a view that, in broad strokes, balances the positive impulse from falling mortgage rates and a recovering economy against the moderating influence of a more balanced supply-side picture,” the bank said on Tuesday.

“We remain of the view short-term mortgage rates have more downside as the Reserve Bank continues to prune the cash rate.

“Even so, in our view, the relative value in the mortgage fixing decision appears to be shifting from a strategy focused on short fixed terms, to one of spreading some risk out into longer-terms like the 2-year.”