It is difficult to pinpoint anything good that has come from the Covid pandemic but perhaps we should thank the Reserve Bank for maintaining the Official Cash Rate (OCR) at 0.25% at the monthly review on 18th August 2021. Despite all the early warning signs that the OCR was likely to start an upward movement at the August review, due to the sudden move of the country into Covid level 4 it was deemed advisable to maintain the status quo for at least another month. This of course means that there is little likelihood of mortgage interest rates increasing immediately.
Covid and all its ramifications has certainly placed a heavy burden on small businesses and the tourist industry and this latest shut down may well be the “straw that broke the camel’s back” for some. From a real estate perspective however, the past year has seen unprecedented demand, soaring property values and a market fuelled by a level of demand that exceeds supply. The current inventory of houses available for sale simply falls short of buyer demand and with thousands of kiwis still overseas but wishing to return home, it is difficult to see any dramatic change to the balance of supply v demand.
Whilst the August lock down has stymied some real estate activity, Tommy’s is of the opinion that as we did last year, we will weather the storm and it will be business as usual again in spring. If you are considering selling your home in this period, please give Tommy’s a call and let us plan a marketing campaign together that capitalises on current market conditions and is workable during whatever restrictions Covid presents us with. We feel optimistic that the reprieve given by the Reserve Bank to hold interest rates will give buyers a degree of confidence and will assist in maintaining sales levels.