- A drop in housing turnover is likely to be short-lived – partly thanks to indications that interest rates are set to rise, one economist is warning.
Over recent months there has been a noticeable slowdown in sales activity, particularly in Auckland. The number of sales is down more than 20 per cent year-on-year.
But BNZ chief economist Tony Alexander said anyone who was hoping that was the first sign of a more lasting market softening might be disappointed.
The Reserve Bank last week cut the official cash rate to 1.75 per cent but signalled it did not see more cuts in the immediate future. The bank response to the cut was muted.
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Some developers are finding it harder to get funding for construction.
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