Little effect on housing market
Nothing really changes for the housing market after yesterday’s drop in the OCR to 3.25%.
Some banks had already trimmed their rates before the RBNZ’s move and most have indicated they will be passing on the bulk of the OCR drop in the next few days.
Cotality (formerly CoreLogic) chief property economist Kelvin Davidson says although another renewed bout of competition is always possible, the biggest interest rate falls “may well be behind us”.
The RBNZ’s prediction for Cotality’s Home Value Index is an increase of 3.5% this year before a rise of 4.8% next year. Cotality agrees with that indication for a subdued upturn this year,” he says.
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