No ORC change shows market already working, says head

No ORC change shows market already working, says head

The decision by the Reserve Bank not to increase the Official Cash Rate today is more evidence that any changes in the New Zealand real estate market will be sustainable not sudden, says Geoff Barnett, National Manager of Century 21 New Zealand.

“Some pundits seem determined to talk down the real estate market this year, but I’ve always said there will be no dramatic turn of events. Rather, what we’ll see is the return to a more realistic market. The decision to hold the OCR for the time being shows there are already many different elements having some measured effect without the need for further intervention.”

Mr Barnett says interest rates will remain relatively stable for some time, as will business and consumer confidence, and inflation now sits within the target band. What’s more tougher loan-to-value ratios (LVRs) are now hitting the likes of property investors helping to moderate the market. He says housing supply in Auckland is also starting to catch up.

“The Reserve Bank didn’t need to act on the OCR as New Zealand is already returning to a more normalised environment.

“Unlike some previous years, 2017 won’t see any major market shifts which is good for buyers while continued underlying market strength will ensure vendors can still achieve strong prices.”

Mr Barnett says this year’s General Election will predictably have some economic impact, with more people for whatever reason set to keep their hands in their pockets in the lead up to it.

“Century 21 remains very confident in the New Zealand real estate market, hence why we continue to grow the company and our brand here. Predictable and prudent decisions like this shows both buyers and sellers they have little to worry about,” says Mr Barnett.

www.century21.co.nz

ENDS

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