The latest mega drop in the OCR rate to an all time low of 3.5% is clearly good news for the residential market. It will be interesting to see how quickly this rate flows to retail rates. Certainly buyers are pre-empting lower rates – the phones are ringing.
On another note, isn’t it great to have International Yachting back on the harbour! Make sure you find a vantage point to take it all in this weekend!
Wednesday, January 28, 2009
Thursday, January 22, 2009
Silver lining?
Happy New Year! Welcome back – despite the barrage of negative press around the economy, we have come back to a property market which looks to have a silver lining. With interest rates falling like a stone, the share market still looking vulnerable, the question is what do you do with your money. Already many are saying I’ll buy a rental property. Similarly, softer asking prices and lower interest rates are making the decision to purchase particularly ‘do-able’. In short, inquiry is up – we’re selling houses. The market place has absorbed the sky falling news and is moving on.
Thursday, January 1, 2009
2008/2009
Last year was truly tumultuous for the real estate industry.
The weekly and sometimes daily news of increasing world wide financial fall out, has seen buyers hold back. Consequently, the number of transactions has been down significantly. The current offset to something of a stalled market has been the progressive lowering of the OCR. The flow on to lower retail mortgage rates alongside softer achieved prices is having an affect on affordability.
Latest reports indicate that as at today affordability is better than it has been for 5 years.
Right now it feels as though the market may be transitioning as buyers re-enter the market. These include investors and those assessing the cost of rental versus borrowing. Certainly for us, we are currently fielding more interest and offers than we have been for some time and our expectation is for this to continue to build all year, as buyers become more confident.
While activity may increase, we believe it may take some time before we see the demand required to fuel increased achieved sale prices.
The weekly and sometimes daily news of increasing world wide financial fall out, has seen buyers hold back. Consequently, the number of transactions has been down significantly. The current offset to something of a stalled market has been the progressive lowering of the OCR. The flow on to lower retail mortgage rates alongside softer achieved prices is having an affect on affordability.
Latest reports indicate that as at today affordability is better than it has been for 5 years.
Right now it feels as though the market may be transitioning as buyers re-enter the market. These include investors and those assessing the cost of rental versus borrowing. Certainly for us, we are currently fielding more interest and offers than we have been for some time and our expectation is for this to continue to build all year, as buyers become more confident.
While activity may increase, we believe it may take some time before we see the demand required to fuel increased achieved sale prices.
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