The market is getting a big boost from the shock of the Reserve Bank’s cut to the official cash rate ...
ANZ’s chief economist is predicting that it will drop to 0.25% by next May. That’s a positive sign for borrowers and means we really don’t need to worry about rising interest rates in the next few years.
CoreLogic has lifted its annual sales forecast on this news, combined with the certainty that there will be no capital gains tax implemented – and, perhaps more importantly, the fact that finding good returns in the current market is a constant challenge. With term deposits providing unimpressive returns and fears of a US recession, property is once again beginning to look like a reliable performer.
Auckland prices look likely to lift in 2020, probably back to where they were in 2016. Auckland rents are also predicted to rise after a period of stagnancy, according to TradeMe Property. Rents in Auckland have been flat since February, but Aaron Clancy says that could change soon: “We think this rising demand and falling supply will put pressure on prices.”
Overall, the trends look positive for Auckland’s property market – there’s always the potential for unexpected events, but right now there are no major concerns on the horizon.