- 1 July, 2015
- PROPERTY MANAGEMENT, COASTAL, COMMERCIAL, LAND/SECTIONS, RURAL/LIFESTYLE, RESIDENTIAL
- Interest rate, RBNZ
- Property prices have moved higher. National average up 5.2% over the year.
- 7,234 dwellings sold in April 2015, up 27.6% on April 2014.
- Employment growth remains robust above 3% p.a.
- Unemployment sits at 5.8% with labour force participation at an all-time high
- Inflation remains very low with CPI falling 0.3% in Q1 and a 0.1% growth over the year.
- The NZ dollar fluctuated over the month and now sits at US$0.71 and AUD$0.92
Effect on property markets
The recent decision by the RBNZ will see buyer enquiry levels begin to rise and sets property markets around the country up for a strong winter. Improving employment markets will also in turn allay job security fears and see demand from investors, first home buyers and up-graders grow. This combined with a lack of listings will continue to drive property prices higher.
Tighter lending restrictions and a new property tax regime are expected to ease concerns that the RBNZ may have a strong price growth in Auckland. Paving the way for further interest rate cuts over the second half of 2015 and a strong spring selling period.
The next RBNZ board meeting will be held on 23rd July.