Reserve Bank’s outlook helpful, says real estate boss
“News that the Official Cash Rate could be held at 1.75% for some time is good news for home owners, as are the Reserve
Bank’s latest comments about the housing market,” says Geoff Barnett, National Manager of Century 21 New Zealand.
“Without doubt our retail banks will be forced to increase mortgage rates somewhat in the coming 12 months. Nonetheless
listening to the Reserve Bank, rates look set to remain low in a historic sense. This will give first home buyers more
confidence to get into the market now, and for others to upgrade properties.”
Mr Barnett says prospective homeowners need to also take heed of the Reserve Bank’s observations that any current lull
in house prices may only be temporary and that price hikes could return ‘given the on-going imbalance between supply and
demand’.
“If I was a first home buyer I’d be seeing this winter as a real opportunity. We still have low interest rates while at
the same time the market has normalised and is in fact a buyers’ market in some places. With one if not both of those
factors likely to change in the medium-term, I’d be buying a house sooner rather than later,” he says.
Mr Barnett says with most retail banks still offering two-year fixed rates well below 5%, and rents in many areas
continuing to rise, many people will be getting back onto the banks’ website mortgage calculators to assess their
options.
“Yes, we’ve got a General Election in three months, but I think the country’s strong overall economic outlook and
population growth, as the Reserve Bank has reinforced, well and truly trumps any individual events. The current
conditions remain positive, making New Zealand housing a great investment still.”
Mr Barnett says Century 21 New Zealand remains on a growth path, with more franchises expected to open this year.
ENDS