MARKET COMMENT AS AT 15TH AUGUST 2018
Following the review of the Official Cash Rate (OCR) by the Reserve Bank of New Zealand on 9th August the rate remained at 1.75% with the Reserve Bank Governor stating that the bank expects to keep the OCR at that level through 2019 and into 2020. The rate has remained unchanged since November 2016. The Governor stated “we will keep the OCR at an expansionary level for a considerable period to contribute to maximizing sustainable employment and maintaining low and stable inflation.”
This policy decision has a major impact on mortgage interest rates and with a low level OCR, interest rates should remain relatively stable for a further period of time. The Reserve Bank Governor also reiterated the fact that there was still a shortage of available housing New Zealand wide. This scenario will give confidence to mortgage seekers and is likely to keep the real estate market moving. Despite some areas throughout the country showing signs of a slight reduction in prices recently and suggestions that this trend could increase, Tommy’s is still finding that in and around Wellington, prices remain stable for good properties.
There has been some increase in the number of properties coming to the market since the worst of winter has passed and this trend is expected to continue in the months ahead. At Tommy’s we anticipate a good final quarter to the year with sales being negotiated with an unsatisfied buying public in good numbers and at acceptable prices.
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