It was a long time coming, but finally the Reserve Bank made the bold and much needed step of slashing the Official Cash Rate by 25 basis points in August, and another 50 basis points this month. Banks were quick to follow suit, by reducing retail rates across the board in the hope of stimulating the market. So how has the market responded, and what has the cut done to prices and demand?

Bayleys GM for Auckland Residential Raymond Mountfort says this financial year has been steady so far, but there was a definite slowdown ahead of the RBNZ announcements.

“In Auckland, we noticed that when we got quite close to the OCR announcement in August, people slowed down a little bit and waited to see what happened. But come early September, the action in the auction room really stepped up a gear.”

Mountfort says it’s the first-time 100 percent of properties had bids placed on them. Open home activity across the same period also saw a huge boost too.

“The feedback from agents was that all of them felt that their open homes were busier. We particularly noticed in central Auckland, Remuera and the Eastern beaches a series of open homes were well attended.”

A lot of that activity focused on central parts of the city, which Mountfort says is normal as new life is breathed back into the market and the seasons shift.

“That part of the market always activates first, and then the same activity works its way outwards. So those signals and those signs are there.”

DOES INCREASED ACTIVITY MEAN INCREASED PRICING?

While there may be more activity and demand, right now that might not necessarily translate into higher pricing as there’s still a large backlog of listings to clear from the oversaturated market.

With that in mind Mountfort says the best time to list is now.

“OCR cuts enable transactions to happen. The banks change their rates and test rates as a result, and people have a little bit more money in their pocket to afford the home they want to buy. So for vendors, the good news is that there's more people out there, with the capability to purchase.”

“But those people are still being very, very discerning, because there are still good levels of stock on the market.”

Mountfort says the OCR cut has enabled vendors to get a sale, but not necessarily a record price.

“I think the factors are there now for deals to happen, and deal numbers to happen. But if people are selling to achieve a record price - we'd never say that it won't happen, but it doesn't feel like that in this market.”

“It feels like the kind of market where you'll get a good level of interest, and you'll be able to deal with the best buyer.”

SHOULD I WAIT TO SELL FOR A BETTER PRICE?

Mountfort says traditionally spring is a great time to list and sell your home.

“Spring is here, so you should be talking to an agent right now if you want to have a good spring campaign and take advantage of this extra bit of action and enquiry.”

“All of a sudden it'll be Christmas again, and a lot of the market will shut down over that time. So if you need to sell, you've probably done your waiting, and now's the time to get in there especially since prices are unlikely to budge significantly in the short term.”

Mountfort says even though there are more buyers with a little more money to play with, it’s still important to meet the market and price competitively too.

“I wouldn't miss this spring. It feels like it's going to activate and get going. The rest of the country is doing high levels of transactions already, so that pent up demand is ready to go. You wouldn't want to sit on the sidelines, watch it happen and miss out.”

**WHAT’S THE MOOD MOVING FORWARD? **

With things picking up, Mountfort says there’s some positive feedback filtering through.

“With an increase in auction inquiry and open home attendance, getting that good feedback suggests that the market is very buoyant.”

“If you've been at open homes and are talking to around 30 people on average over the weekend, you're in a good position to talk to sentiment. We’ve got around 250 agents doing that.”

Mountfort says now is as good a time as any to speak to an agent, and get your property listed.