The Reserve Bank’s decision yesterday to hold the official cash rate is further indication that any changes in the real estate market will be sustainable not sudden, the head of Century 21 New Zealand says.
“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,” said national manager Geoff Barnett
“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.”
He said interest rates will remain relatively stable for some time, as will business and consumer confidence, and inflation now sits within the target band.
“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.”
Barnett said the upcoming general election will have some economic impact, with more people likely 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,” said Barnett.