Why Now is the Best Time to Build a Home in Hawke’s Bay – Take Advantage of Falling Interest Rates!
If you’ve been thinking about building a home or adding a supplementary dwelling in Hawke’s Bay, you’re not alone. With recent drops in interest rates, the New Zealand property and construction landscape is shifting in a way that might make now the perfect time to start your project. Here's why.
Interest Rates Are Falling—The Cost of Building is Lower
After a period of high interest rates, the Reserve Bank of New Zealand made its first cut to the Official Cash Rate (OCR) in over four years in August 2024. Since then, rates have continued to decline, with another reduction in October 2024, bringing the OCR down from 5.25% to 4.75%. This 50 basis point drop means borrowing money is now cheaper, making the financial side of building a home more manageable.
For those looking to build a home or add a supplementary dwelling as an investment, this interest rate dip means you could secure a lower mortgage, saving you thousands over the life of your loan. And with predictions of further drops, now could be the ideal moment to lock in your building plans before rates start to climb again.
A Stable Building Industry in Hawke’s Bay
The building industry in New Zealand has been stabilising over recent months, making this a great time to plan your construction project. Here are a few reasons why:
Lower Workloads for Builders
Builders' workloads have balanced out recently, meaning they can take on new projects without long waiting periods. In the past, the surge in demand often led to extended project timelines. Now, with the current stability, projects are likely to move ahead more quickly.Stabilised Material Costs
The fluctuation in material prices, which was a concern for many during the peak of construction demand, has now levelled off. Material prices are no longer surging unpredictably as the supply and demand has balanced, making budgeting easier and reducing the risk of unexpected costs. This stabilisation is another good indicator that it’s a smart time to start your build.Greater Availability of Trades
The availability of skilled tradespeople is higher now than it has been in previous years. This means that any delays related to finding reliable and qualified electricians, plumbers, or other key trades are significantly reduced. The more available workforce translates into a smoother, quicker build process. The lower competition in the market means that prices have dropped back from the peak building period in years prior.
Build Before the Market Heats Up Again
As interest rates continue to drop, there’s a good chance the property market will heat up. Lower borrowing costs typically lead to an increase in property values, making it a prime time to get your foot in the door with a new home, subdivision, or supplementary dwelling. By starting your build now, you can avoid future delays and rising costs associated with increased demand. If you’re looking at adding a rental property, now’s the time to ride the wave of property value increases, ensuring a solid return on investment down the line.
Why Choose Buildmac for Your New Build in Hawke’s Bay?
At Buildmac, we’re more than just builders—we’re partners in turning your vision into reality. Our experienced team in Hawke’s Bay is ready to handle every aspect of your home build, from initial design to final touches. With the building industry stable and interest rates dropping, now is the perfect time to take advantage of our expert services.
Contact Buildmac Today for a Home Design and Build Quote
Don’t wait for the market to heat up. If you’re considering a new home or an investment property, now is the time to act. Let Buildmac guide you through the process with professionalism and expertise. Contact us today for a free consultation and a no-obligation design and build quote. Together, we’ll create a space that meets your needs and makes the most of today’s favourable market conditions.
Keywords: interest rate drops, building houses in New Zealand, Hawke’s Bay builders, supplementary dwelling, new build investment, property values, home design and build