Will “Brexit ” lead to an OCR cut?
You could be wondering what affect Brexit may have on the property market (if any).
Market expectations suggest that the Brexit vote makes it more likely that the Reserve Bank will cut the Official Cash Rate again on August 11. Some bank economists have argued that financial turmoil would increase bank funding costs on international markets, which might either push up mortgage rates in the absence of more OCR cuts, or stop them falling if the OCR was cut.
The uncertainty will also result in higher bank funding costs for New Zealand. This means that although NZ two-year swap rates are falling, mortgage rates and business lending rates are unlikely to fall as far.
Migration is up 8% from this time last year, and more than half of the new arrivals who stated Auckland as the location they intended to live in on their arrival cards. The most immediate impact is on Auckland's housing market, with a housing shortage already evident. However, on the upside, building activity in Auckland is up at an all time high of $6 billion per year.
Did you know?
Interest.co.nz has launched a new way for its readers to see the results of property auctions held throughout New Zealand. Along with a photo and description of each property, it shows whether or not it was sold at auction and if it did, how much it sold for.
To search for a suburb, simply click this link http://www.interest.co.nz/property/auction-results.