Official Cash Rate & Marketing Trends
Tuesday 21 May 2019
With the news the Reserve Bank has dropped the Official Cash Rate to 1.5% and flagging a further reduction in the coming months, what does this mean for property trends in our region?
The short answer is more of the same, in recent months we have seen the market settle into more normal trading activity, simply because we are seeing more sellers willing to list their property for sale, feeling secure in the fact that they will be able to find a suitable replacement property.
Buyers also know house stocks are still in relatively short supply, but new listings are coming to the market at a steady rate. Buyers who have done their homework (i.e. pre-approved finance) know they will have a good opportunity of securing a property, provided they move reasonably quickly.
When we say, ‘have done their homework’, what do we mean? There are three things that vendors (sellers) look at when presented with an offer
- How much and how good is the money being offered?
- Does the settlement date fit their needs?
- How long will the terms and conditions (i.e. building inspection and checking council records) take to be satisfied?
So, if you are looking to buy or sell, now is a great time! The Reserve Bank has stamped its mark on the current market, with interest rates trending down and demand for both rental property and home ownership still strong as New Zealand’s population growth continues.
If you are thinking of buying or selling, talk to one of our Summit team and remember the best place to find a property is within the 39,000 copies (per week) of the Summit Weekly!
