State of the Nation
18 Feb 2016
Well the Auckland Housing market is still getting a lot of media attention as everyone looks for signs the market has turned or the so called "bubble" is bursting.
Some media are also picking up on the ripple effect from Auckland with the Waikato and Bay of Plenty markets showing good gains.
As mentioned in our previous posting, we feel the market is still taking a breather after a combination of government property tax initiatives and China restricting the outflow of funds.
However the supply and demand equation still favours limited supply so we expect prices to renain firm. Add to this the historically low interest rates; which should see investors entering into the property market as fixed interest returns are limited and the share market remains volatile.
Generally the NZ economy is still in good shape with tourism picking up where dairy has fallen off and it is and it's a relatively safe bet that the Reserve Bank will start lowering the OCR again in the near future.
So the outlook for residential property? - BRIGHT