Why Falling Interest Rates Make Now the Best Time to Build or Renovate.
March 2025 Update: Seize the Opportunity While Builders Are Competing for Work
If you’ve been thinking about building a new home or renovating your existing one, 2025 might be the best time in years to get started. With the Reserve Bank of New Zealand recently cutting the Official Cash Rate (OCR) in February, borrowing costs are lower, making home loans and renovation financing more affordable. However, the construction industry hasn’t caught up yet—many builders are still experiencing a slowdown due to the lingering effects of previously high interest rates. This means a rare opportunity for homeowners: competitive builder pricing, faster project start times, and better access to quality trades.
Lower Interest Rates Make Borrowing Cheaper
The Reserve Bank’s February OCR cut signals a shift towards more affordable lending, after years of high interest rates that slowed down new builds and renovations. With borrowing costs dropping, securing a home loan or renovation financing has become much easier, making it a prime time to invest in your property. Whether you’re planning a full home makeover, a new deck, or upgrading your kitchen and bathroom, now is the time to lock in these favorable rates before the market heats up again.
Builders Have More Availability – Get In Before the Rush
While interest rates are coming down, the building industry is still feeling the effects of the recent downturn. Many builders who were fully booked during the peak of the construction boom now have more open schedules, meaning:
✅ Faster project start times – No more waiting months to get your project underway.
✅ Competitive pricing – Builders are more likely to negotiate to secure work.
✅ Better access to skilled trades – Plumbers, electricians, and other key professionals are more readily available, reducing the risk of delays.
Renovate or Build Now Before Costs Rise Again
As history shows, when interest rates drop, demand for construction rises soon after. This means that material and labor costs are likely to increase as more homeowners take advantage of cheaper money. Acting now allows you to secure better pricing and avoid future price hikes, maximizing the value of your investment.
Looking to Build a New Home in Hawke’s Bay?
If you're considering building a brand-new home in Hawke’s Bay, our sister company, Buildmac, can help. Specializing in new home builds, Buildmac provides expert craftsmanship, high-quality materials, and a seamless construction process. Whether you’re looking for a modern home, a family-friendly design, or a custom-built residence, Buildmac has the experience and expertise to bring your vision to life. Get in touch with them today to discuss your new home project.
Why Choose JM Services for Your Renovation in Hawke’s Bay?
At JM Services, we are licensed building practitioners with extensive experience in renovations and new builds across Napier and Hawke’s Bay. Our team is committed to high-quality workmanship, clear communication, and delivering stress-free renovations from start to finish. Want to check out some of our work? Head over and have a look at this 1900’s villa renovation we completed in Central Hawke’s Bay, or this ensuite bathroom renovation from Napier.
Get a Free Quote Today – Don’t Miss This Window of Opportunity
If you’ve been considering building or renovating, now is the time to act. Interest rates have dropped, builders are more available, and costs are still competitive. Contact JM Services today for a free consultation and no-obligation quote. Let’s make your dream home a reality while the market is in your favor!
