Buying Trend Likely To Continue After OCR Review

Increased Buying Trend Likely To Continue After OCR Review

Today's announcement of a further drop in the OCR rate and the Reserve Bank strongly advising banks to support the marketplace through passing on the benefits of the lowered rate, look set to continue the lift in real estate activity first noted by First National Real Estate in mid January.

"In January we noted a major lift in website activity, phone and email enquiry and up to 400% more people visiting open homes than at any stage in the last half of 2008," First National General Manager John Stewart said today.

"There was no doubt in our minds that there would be a lift in sales within the following six weeks and indeed that's what happened. February saw the largest number of sales per month since April 2008.

"Today's further drop in the OCR will, I'm sure, engender further confidence in the buying public" added Stewart.

"We have noted, in almost all markets, several strong shifts. Astute investors are buying rental property, first home owners with suitable security and cashed up high end buyers are most active, while the middle market 'family home buyers' perhaps the least."

Homes selling are generally more recently listed and probably reflect better, the current market values... and while there are many instances of multiple offers on properties, those unsuccessful with their bids are not immediately buying other property.

"They appear to be being very selective and choose to wait for another property that meets their requirements rather than rush into an immediate alternative.

" As others have noted, there has been record-breaking website enquiry these past three months and that, along with similar lifts in Open Home visits and more traditional enquiry suggests buyers are just waiting for the right time and the right home.

"The lowered interest rates indicate the time could well be right for many but as listings are increasingly being sold though, that 'right home' may become increasingly difficult to find."

ENDS

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