OCR at lowest level ever recorded

Don’t you just love a great Hawkes Bay day out watching your kids on the sports field. Just back in and under instructions to do my comment as Tauranga Boys under 14 take on my sons Napier Boys team. We had three billets last night, all well mannered young men who were experiencing their first away trip for the school and staying at different homes. That’s all part of what team sport offers and great life experiences for the kids.

The latest REINZ statistics were out for the month of April with the Hawkes Bay median price dipping from the high last month of $493,000 down to $465,000 but still significantly up on April 2018 of $430,000. You cant read too much into the ‘month on month’ level with the drop certainly no indication of a market that is possibly slower and heading down. It isn’t with plenty of buyers still active at many of our listings and outstanding prices still being realised through good campaigns and multiple interest.

Further good news for the market with the Reserve Bank of NZ (RBNZ) reducing the Official Cash Rate (OCR) last week to the lowest level ever recorded at 1.5%. You only need to look back to 2007/2008 pre Global Financial Crisis (GFC) and the OCR sat at 8.25%. So I am sure you are all asking how low will our mortgage rates go? The best I could find in a quick search was 3.89% fixed for two years which sounds pretty good. However the major banks are currently in the process of a RBNZ ‘capital review’ in regards to having to hold significantly more money, which will ultimately effect what they can loan to us and at what rate? Sounds confusing? It is.

We have launched our promotion of ‘we’re your kind of people’ which has been very well received with our team doing what they do in our community. Our team is selected very carefully with people who can be trusted to deliver the best outcome for your property. It is not hard to achieve a result in this market but it is very important to ensure you have maximised exposure and delivered the very best result for your vendor.

– Simon Tremain

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