C21 Market Pulse | November 2021 | New Zealand

C21 NZ PERFORMS STRONGLY DESPITE LOCKDOWNS & RESTRICTIONS

a sharp correction, but it doesraise some concerns about recentbuyers borrowing more to theirrelative income, making them morevulnerable to higher mortgagerates.It’s no surprise that the Reserve Bank stands by its forecast that house price growth will likely ease. It will also get a bit tougher to borrow money. Nonetheless, the New Zealand property market remains an attractive proposition for those taking a longer view.

While it is a time of turmoil in many

respects, let’s not forget that NewZealand enjoys great political,financial, economic, and socialstability. That has helped underpina relatively prosperous housingmarket over the years.The likes of 25% annual median

house price growth was neversustainable, but the good news isany easing will likely be sure andsteady.The Reserve Bank is not predicting

Hence, the central bank has said it will consult on the merits of implementing debt servicing restrictions and expects banks to be more cautious about high debt-toincome loans.

No one wants to see young Kiwis over commit and then get caught. In that regard, the Reserve Bank’s soundings and possible actions are designed to minimise such risk.

Early last month, the Reserve Bank lifted the Official Cash Rate by 25 basis-points to 0.50% - the first OCR hike by the central bank in over seven years. Interest rates remain low, with all eyes on the next OCR review on 24 November.

Mortgage rates are still very low, rents are at record highs, housing demand remains strong, and despite the pandemic and lockdowns, economic confidence and unemployment are in relatively good shape. All things considered, we’re not expecting a red-hot summer, but it will be a busy one.

Yes, there are massive stresses in certain sectors and regions, but history shows us that residential housing in New Zealand is a safe and proven medium to long-term investment.

In other news, Papakura’s Century 21 Local Realty has again won Top Office for the Quarter in our third quarter awards. Our central city franchises in both Wellington and Auckland also had some key wins, which we cover in this issue.

Let’s not forget that the third quarter saw New Zealand go into Level 4 lockdown, with the entire Auckland region in lockdown for the second half of the quarter.

Despite this, and ongoing restrictions in real estate, Century 21’s salespeople and offices up and down the country have done a phenomenal job. This all bodes well for a strong summer, with activity already on the rise.

www.century21.co.nz

Contact: Tim Kearins - Century 21 New Zealand - (0274) 495-547