Market Snapshot - July 2015 Birkenhead Second rate cut comes with indication of further easing

Auctions

In a statement released on 23 July, the Reserve Bank of New Zealand announced a second consecutive reduction of the official cash rate by 25 basis points to 3 per cent.

Transactions in Auckland again dominated the auction market in July, representing 74% of the national total of auction sales. 44% of all dwelling sales in Auckland were by auction, compared to 30% in July 2014.

Reserve Bank governor, Graeme Wheeler said that moderate global economic growth and uncertainty around the expected tightening in US monetary policy contributed to the July rate decision. Mr Wheeler stated that “New Zealand’s economy is currently growing at an annual rate of around 2.5 per cent, supported by low interest rates,construction activity, and high net immigration. The growth outlook is now softer than at the time of the June Statement. Rebuild activity in Canterbury appears to have peaked, and the world price for New Zealand’s dairy exports has fallen sharply”. Focus remains on the Auckland property market, although there aren't major concerns in other areas of the country. As Mr Wheeler noted in his statement: “house prices in Auckland continue to increase rapidly, but, outside Auckland, house price inflation generally remains low. Increased building activity is underway in the Auckland region, but it will take some time for the imbalances in the housing market to be corrected”. (Extract from your local expert, Stuart Matheson, Registered Financial Adviser - Loan Market)

Prices Auckland recorded the largest percentage increase in median price compared to July 2014, at 21%, followed by Northland at 16% and Southland at 15%. Nelson / Marlborough recorded the largest percentage increase in median price compared to June, with 8%, followed by Otago with 7% and Hawkes Bay with 4%. (Extract from REINZ News Release - 13 August 2015)

sales last month

Birkenhead

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