OCR Hike Fails to Spark House Price Growth

The Reserve Bank of New Zealand has raised the Official Cash Rate (OCR) to 2.75% in line with expectations, with further rises potentially on the horizon as inflation remains a concern.

However, house prices continue to fall, with a 0.4% monthly drop in the nationwide median value and a 0.5% drop in Auckland's median value in August, according to the Cotality Home Value Index.

Cotality chief economist Kelvin Davidson notes that sellers are not feeling pressured to lower their prices due to the abundance of listings on the market, but investors will be wary of potential tax policy changes as the election approaches.