OCR Driving Activity

Director of City Realty Group, Daniel Horrobin: “The October 9 cut in the OCR by a further 50 basis points has driven a further surge in market activity across the country.”

“Our Ray White Corporate office reports the number of sales completed across the group was 30.2% higher than the same month last year and 18.4% higher than in September.”

“More confidence can already be felt across the auction market, with Ray White New Zealand reporting the number of properties to go under the hammer in a single week mid-October, was up 41.8 per cent when compared to the same period last year. “

Our very own Loan Market partner Jamie Maclennan reports “The latest survey of mortgage advisers by mortgages.co.nz found that a net 34% of respondents said banks had become more willing to lend, while a net 27% said more people were inquiring about refinancing. By mid-October there was a 44% increase in applications in the past month.”

A NZ Herald headline on 25 October stated: “Low interest rates bring property investors out of hibernation, as they borrow more than they have in three years.”

Daniel adds: “With inflation falling in the September quarter to its lowest rate in more than three years, we remain optimistic there may be a further OCR cut on 27 November. That would certainly consolidate the new-found confidence in the market and provide an ideal springboard into 2025.”

Seller sentiment is similarly positive with website interest.co.nz reporting: “A flood of new listings onto an already swamped housing market in October pushed the total stock of properties for sale up to a 10-year high. Property sales website Realestate.co.nz received 11,572 new listings in October, up 21.4% compared to October last year. That pushed the total stock of properties for sale on the website up to 32,339 at the end of October, the highest level it has been at that time of year since October 2014.”

“In our Central City market,” says Daniel, “the number of properties available for sale on Trade Me has consolidated (after finally showing signs of increased activity last month) with a solid 5% increase since the beginning of October.”

“With sales activity in our Central City office remaining steady compared to last month” adds Daniel, “we were delighted to close out the month on the auction floor on 31 October with four from four sold under the hammer, with our group result being five from seven for the day. We are currently building our November auction pipeline to match and maybe surpass our October count. This shows robust seller confidence in the auction process backed by undeniable statistics showing open home visitors to auction properties far surpass those to properties sold by other methods.”

“Our October open home visitor numbers in the Central City, following a significant jump in numbers in the September month, rose 10% again in October.  The number of central city properties having open homes and the number of open homes conducted also improved on the previous month.”

In the tenancy space, it’s a continuation of last month with good tenants still hard to find. 

“As we look forward with optimism to the next OCR announcement later this month,” says Daniel, “there is a definite sense that end of year is fast approaching and the resulting dilemma of acting now (or in the new year) arises for many.” 

“If it’s any help,” adds Daniel, “our central city market historically runs on full power right to the end of the year. Whether buying or selling, have confidence, we don’t slow down until we have to.”