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
AI

AI summary

The 2025 property market signals the end of the downturn, but a slow recovery is expected. It remains a buyer's market with high listings, though property values are starting to rise, according to the CoreLogic Home Value Index.

Mortgage rates have fallen, but the biggest drops may be over. Sales volumes are projected to increase, while DTI rules will become a key consideration for borrowers. The rental market is expected to remain flat for now.

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