The 2023 housing market: NZ Mortgages
After a volatile couple of years, buyers and sellers alike are wondering what will happen with the housing market in 2023.
The start of the year has seen the severe impact of Cyclone Gabrielle, and we all feel deeply for those affected.
Some of the repercussions reach as far as the housing market here in the South Island, as it is likely that the Reserve Bank will tone down its aggressive stance against inflation in the coming months.
My view is that the OCR will remain stable for the next few months, possibly lowering in September/October 2023.
In any case, it looks like inflation is coming under control, so we are heading towards a more stable and balanced market.
This doesn’t mean you should hold your breath waiting for interest rates to come down. They won’t be reducing as fast as they went up, so you need to base your borrowing on what you can afford in today’s market.
My general advice is still to fix for a shorter term, such as 12 to 18 months, but talk to a mortgage adviser for more specific guidance.
