A golden market: NZ Mortgages
Despite the country entering a recession, it is not all doom and gloom out there.
On 1 June, Loan-to-Value Ratio (LVR)restrictions were eased, which combined with the price cap for the Kāinga Ora first home grant increasing to $775k for new builds and $575k for existing properties, meant the lower end of the real estate market was perfectly poised for an upswing – which we are starting to see.
First time home buyers and property investors are taking advantage of the current deals being dangled by banks, who are looking to attract borrowers given lending is down 30-40% on last year.
While stock levels at the upper end of the real estate market are low, it is a buyers-market for those looking under $650k – which is the current average house price in Christchurch. For those who are in the position to do so, this is a golden opportunity to buy.
Especially given economists are anticipating the OCR to hold at this level for the next 12 months – which means interest rates have more than likely peaked.
There is a general feeling we will start to seem them come back by the end of 2023.
My advice for those looking at their interest rate is don’t fix for any longer than 12 months.
Contact NZ Mortgages on 0800 100 300 or hello@nzmortgages.co.nz.
