This is traditionally a quiet time in the property market, as most of us take a well-earned break. In most years, we see a big upswing in sales volumes and prices in late February and March. Will that happen this year? There are a lot of pressures coming to bear in both directions.
Those who believe the market will surge in early 2018 point to a continuing housing shortage in Auckland, strong demand from housebuyers and continued low interest rates. On the flipside, those who believe the market will remain flat say that lending restrictions, flat growth and tightening rental legislation mean investors are going to keep sitting on their hands for the time being.
Sadly, our crystal ball seems to be broken, so we don’t yet know what’s going to happen next year. But there are definitely some positives for borrowers with banks duelling it out to provide excellent home loan rates, as well as discussion from the Reserve Bank that loan-to-value ratios will be loosened.