Both Auckland & the North Shore reached record highs during May 2015, up 20% to $749,000 across Auckland and a whopping 26% to $946,000 on the North Shore, when compared to May 2014. Pretty mind boggling really. Sales volumes also grew significantly on last year, 23% across Auckland and 14% on the Shore.
As prices continue to rise up, up and away, there is a glimmer of light for buyers as interest rates continue to drop, down, down, with the RBNZ reducing the OCR this week a quarter percent to 3.25%
Below is a brief condensed article from the NZ Herald online news which covers it quite well.
BANKS QUICK TO SLASH MORTGAGE RATES AFTER RESERVE CUTS OFFICIAL CASH RATE
Governor Graeme Wheeler lowered the official cash rate to 3.25 percent, in a closely watched decision where markets were largely split on whether he would cut rates now or later, saying a more pronounced slump in export prices than expected and the prospect of waning consumer demand on increasing petrol prices threatened to keep a lid on already low inflation.
Just six of 16 economists forecast today’s rate cut.
Kiwibank immediately reduced its variable home loan rate to 6.4 percent from 6.65 percent while ASB cut its floating rate to 6.5 percent from 6.75 percent and said other lending and deposit rates are currently under review. ANZ Bank cut its floating and flexible home loan rates by a quarter point.
Be quick to get out this weekend and check out our latest listings, competition is high with the winter drop in listings now quite apparent. Have a great weekend!