I see we are “technically in recession”, based on 2 consecutive quarters of economic contraction = technical recession. 

On a more positive level, the last quarter of 2022 contracted by 0.7&, and the first quarter of this year it contracted by 0.1% – so arguably the rate of contraction is receding !! 

Today the NZ dollar has dropped a little, and the wholesale interest rates (which affect our mortgage rates) have also dropped very slightly. 

From a home loan perspective I see this as being business very much as usual. 

We are experiencing increasing enquiry from first home buyers, plus those who are looking to purchase property one step up the ladder from where they are now. 

There is a sense that that interest rates are close to peaking , and that property prices are close to bottoming out – so if you find yourself currently to be in a buying position, it would seem to be a pretty good time to get active. 

I wouldn’t be buying on the basis that rates WILL drop, or that house prices WILL increase – but given there is a reasonable chance that they might – if you can afford  to enter the market fairly soon, there are suggestions that your timing might prove to be pretty good ! 

Warm regards, 

Stu