It seems that the legislative and economic levers pulled by the government and the banks over the past 12 months are doing their job. The housing market has reluctantly taken its foot off the accelerator and flicked on the cruise control… for the time being.
With mum-and-dad investors hesitating and foreign nationals shut out, it’s now time for first-time buyers to take their chance. Buoyed by a loosening of LVRs (Loan to Value Ratios), record low interest rates, and growing confidence in the economy, we have certainly seen a boost in this sector in the past couple on months, particularly in Auckland’s western corridor, out through Mt Albert and Avondale.
Looking at the big picture, the political and economic landscapes at home are looking pretty stable. There was a bit of a wobble immediately after the election, but that time has passed and there’s now more confidence across the board. The same cannot be said abroad. Given the scenarios currently playing out in Europe and USA, New Zealand is looking increasingly like a safe and stable haven, and that’s attracting Kiwi expats back home with their GB Pounds and US Dollars. And that’s good news for the real estate market.
Earlier this month, the new AML (Anti Money Laundering) legislation came into effect. Ray White, as a company, wholeheartedly supports these changes and has been extremely proactive in ensuring that the necessary training and systems have been put in place to make the transition as smooth as possible for our clients. We do not believe that these new rules will have any adverse effects on the housing market, as they are measures that have been in effect in the banking sectors for almost a decade.
