There has been plenty of negative media around what’s happening in the housing market recently, and it’s a topic we’ve been talking about a fair bit too. Yes, sales have dropped and Auckland house prices are down around 30% at the moment. It’s not all bad though, as JB explains to Mike Puru below:
As JB mentions, what we’re seeing isn’t something to panic about. We need to remember that we’ve got a high employment rate, we’re not seeing inflation, and even though interest rates might be creeping back up they are still low. 8% – 10% was considered normal back in the day. Not the case now though - the new “Normal” is 5% – 6% which historically isn’t high. The evidence is there, as JB explains.
In all this chat about interest rates, as Mike mentions, a small change in the percent that you’re paying can make more of a difference than you might realise. It could be a good time to think about your mortgage and whether it needs reviewing – give us a call and we’d be happy to have a chat.