Why you should sell now
Traditionally at this time of year, the market is quieter – with fewer properties for sale and fewer buyers looking. But not this year. There are plenty of buyers and not enough properties.
If you were waiting until spring to sell, our advice would be to act now instead. In this pre-election market, properties are selling more quickly and many are attaining premium prices.
Banking industry commentators say that, despite the Official Cash Rate* remaining in a holding pattern, they predict a gradual rise in interest rates over the next couple of years. This prediction is reinforced by banks’ competition for deposit investments. If deposit interest rates creep up – to attract investors – it is inevitable that lending rates will also rise. These factors will impact on buyers’ willingness to borrow more than they need.
* What is the Official Cash Rate (OCR)? Every six weeks, New Zealand’s Reserve Bank updates the OCR to either dial up or down the cost of money. Movements in the OCR affect the country’s spending, saving and investing decisions.