Early Christmas Present Likely for First Home Buyers
First home buyers could be in for a Christmas surprise, following no change in the Official Cash Rate (OCR) by the Reserve Bank and a 13.1% decrease in homes on the market, as reported by the Real Estate Institute (REINZ) this week.
REINZ’s November update reveals sales are down 4% across New Zealand, there were 7,800 fewer listings in the first ten months of 2019 and 13.1% fewer homes available for sale, compared to this time last year.
Joe Wilkes, a property expert advising Tall Poppy Real Estate, believes these figures, combined with the Reserve Bank’s decision to keep the OCR at 1% could benefit first home buyers and investors before the end of the year.
“We believe it’s highly likely there will be a reduction in deposit requirements for investors and first home buyers at the next financial stability report at the end of November, which could be an early Christmas present for people looking to get into the market.
“Decision-makers will be looking at ways we can drive growth in the housing market. While REINZ reports the median house price hitting record highs, the wider industry will be aware of the need to get more houses on the market and lift overall sales,” says Joe Wilkes.
Tall Poppy Real Estate continues to buck national trends, reporting 25% year on year growth in sales during October. Tall Poppy New Plymouth is set to report a record November, despite REINZ figures highlighting 22.8% drop in regional sales last month.
Kim Fever, the Owner of Tall Poppy New Plymouth, estimates their team now gained close to 15% market share in just 12 months.
“November looks set to be our best month ever with record sales, and we’re only halfway through the month. Our team has grown from two to ten in just one year, and we’re expanding into Stratford, which is an amazing first birthday present,” says Kim Fever.
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