MW and LM Single Builders owner Mark Single said he believed the cut would help everybody from people with existing home loans and potential sellers to those who wanted to have their houses built.

“The big thing is it’s going to make it positive for people – in your mind the interest rate hike is over and it’s going to stabilise,” Mr Single said.

“Even when it was that stable for a little while, people were I think still more edgy, thinking it was going to go up.

“But now that it’s come down a bit, it makes everybody feel confident that that’s over.”

He said he was happy with the 0.25 per cent reduction, but another 0.25 per cent in a couple of months wouldn’t go astray.

Mr Single and his wife Loanna have a residential subdivision on the city’s northern outskirts that could accommodate up to 1200 homes. The opening was on Sunday but it was rained out.

So far, the company has 13 blocks of land on hold and hopes to get to work on building the roads in about a month’s time.

“With our subdivision, it’s probably perfect timing,” Mr Single said.

“People out there are feeling confident that the interest rate hike’s over and it’s going to come down.

“It definitely (instils) real confidence in people and I think that’s all they need.”

He said he believed the cut would motivate people who had been waiting for interest rates to lower to get into the market.

“All of a sudden you get people that have been sitting, saying, ‘Well, the market’s bottomed out, we better get out and get into it now’.

“I think it’s just a fantastic time.”

He said the Reserve Bank was concerned about inflation when it put the rate up several times in succession.

“If that’s what they were trying to do, they did it. I even think now they probably realise they dealt with it a bit too hard.

“Three interest rate hikes over that quick (succession) definitely put a stop on it.”