If you’re looking for a glimpse of what’s in store for the rest of 2019 in the property market, there are many opinions, especially in the media. CoreLogic’s predictions which are based on data analysis and expert insights are a good indicator of what may happen over the next six months, although the world of property does tend to beat to its own drum!
Residential property looks like it will continue ticking along at a steady pace during the next 6 months. Sales volumes are expected to remain consistent to what we’ve seen over the last 6 months, and there is certainly enough market activity there at the moment for this not to be a concern.
Low mortgage rates will continue, providing competitive home loans to first home buyers, those looking to upsize, and homeowners who might want to switch load providers.
New Zealand’s banks are currently under increased scrutiny and are likely to be subject to extra capital requirements by the end of November. This will take place in a phased approach, probably over a 5 year period. This may result in banks relooking at their mortgage rates to borrowers in order to service their debt.
If your home loan is about to expire or you’re house hunting, competition in the banking sector is likely to remain intensely competitive. Banks competing for lenders with cash incentives, promotions and rate offers is likely to be something we’ll see heat up later in the year. This will happen even if the Reserve Bank doesn’t cut the official cash rate again.
In summary, it’s looking like more of the same until Christmas, and on a practical note, New Zealanders buy, sell and move homes everyday – not much halts this kiwi tradition!
Source: CoreLogic, June 2019