First-home buyers could be in for a 'Christmas surprise'

Real estate agency Tall Poppy Real Estate believes that first-home buyers could be in for a “Christmas surprise” following the unchanged official cash rate (OCR) and a 13.1% decrease in homes on the market. 

This month, the Reserve Bank of New Zealand (RBNZ) has surprised everyone by keeping the OCR at 1.0%, contrary to economist predictions of a 0.25% cut. Meanwhile, the Real Estate Institute of New Zealand (REINZ) has found that sales were down 4% across the country – with 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 that the institute’s figures and the central bank’s OCR decision could benefit first-home buyers and investors before the year ends.

“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,” Wilkes said.

“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.”

Read more: Reserve Bank defends OCR decision

Meanwhile, Tall Poppy New Plymouth is set to report a record November despite REINZ figures highlighting a 22.8% drop in regional sales last month.

Kim Fever, the Owner of Tall Poppy New Plymouth, estimated that they now gained close to 15% market share in just two 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,” Fever said.