PHOTO: The Reserve Bank of New Zealand. FILE
Rowan Dixon, Acting Chief Executive at REINZ says: “The Reserve Bank’s announcement today of a 50 basis points increase to the OCR is the fourth consecutive double-hike from the bank, taking the OCR to 3.0%.
“As inflation persists, an increase to the OCR is expected. REINZ’s July data shows that while the median property price is showing an annual decrease, affordability remains an obstacle for many — driven by rising interest rates, inflation, and tighter lending criteria. Sales counts have also declined across the country by 36.7% — in part due to higher mortgage interest rates, LVR’s and tightened lending criteria once again.
HAVE A STORY FOR US?
“This creates a challenge for many buyers. Increased borrowing costs mean that securing finance and debt servicing will continue to impact on their ability to enter the market,” concludes Dixon.