House Talk 134

The May budget was not what we would normally expect of a pre-election budget. The tough economic times dictated no election “bribes” seen in previous budgets. While it may have been nice to get some goodies in the budget it is better for the economy and for property owners overall that such government spending did not occur.

Credit rating agencies would have frowned on the NZ economy and put us at risk of a downgrade which in turn would have meant higher interest rates for borrowers and of course higher mortgage rates.

Already economists are predicting it will probably be later still perhaps not even this year before the reserve bank increases the OCR which leads to higher mortgage interest rates.

The result.....continued low mortgage rates probably meaning more confidence for buyers and therefore more house sales.

April saw gradually improving sales in West Auckland with 203 sold and prices increased by around 2% over the March figures.

With fewer properties for sale it is likely prices will continue a gradual upward movement.

  

Speaking of fewer properties for sale, I have sold 12 properties in the last 7 weeks and need more to sell so I am happy to provide a “Winter Warmer” of free lawyer’s fees* and an exciting free comprehensive marketing package to every new seller who puts their home on the market with me within the next 3 months.

Best wishes,

John Goodrum AREINZ
Licensee Agent REAA 2008