Home Make-overs Could Be the Early Stirrings of a Kiwi Housing Market Revival After months of quiet on the property front, there’s a subtle change happening. A rise in spending on couches, TVs and home furnishings may not scream “market boom” — but for the savvy observer, it’s flashing a “warm-up” sign for the housing market. Why this matters When householders start gearing up with new furniture or renovating, it often means they’re thinking ahead to selling, moving or upgrading. Kiwibank economists view this uptick in spending as a clue that the housing market, while still lying dormant, may be stirring. In other words: if families are preparing for change, it often comes before the market actually moves. What’s going on behind the scenes

• Furnishings spending rising: More Kiwis are buying bigger ticket home goods, which tends to happen when they’re planning a shift.
• Costs of building softening: Construction costs increased by just 0.8% over the past year — the smallest rise since the global financial crisis. That suggests less cost-pressure for new builds or renovations.
• Upcoming policy changes: The Reserve Bank of New Zealand is set to loosen Loan-to-Value Ratio (LVR) restrictions from 1 December, which could unlock more borrowing and buyer activity.

What this might mean for you

• If you’re thinking of selling: This is a great time to make low-cost, high-impact improvements (fresh paint, smart lighting, declutter). Preparing your home now means you’ll be more ready when activity picks up.
• If you’re buying or refinancing: Market conditions may soon move. Keep your finances solid, know your affordability, and have your deposit checked so you’re ready for when listings increase.
• If you’re a home-owner staying put: While you’re not moving immediately, now could be a worthwhile time to renovate or refresh your home. With softer cost pressures and a bit more borrowing flexibility ahead, you might add value at sensible cost.

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The big takeaway The housing market hasn’t “woken up” yet — but one of the earliest signs of life is people moving home-furnishment dollars into their houses. That could mean the market is on the cusp of change. The decorators and DIY-ers are often ahead of the estate-agents and open homes. If you keep one eye on the couch-buying, and the other on listings, you might just spot the shift before it becomes headline news.

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Source: MPA Magazine New Zealand