The best leading indicator of New Zealand's housing market is the auction clearance rate in Auckland.New Zealand's central bank cut the official cash rate and signalled more cuts were coming at its last meeting.Now, business and consumer sentiment has improved and house prices are predicted to rise 6 per cent over the next year.Share article
"It is a change of regime. The question is no longer: will rates fall? Or could they even go higher? The question now is: how fast are rates going to fall?" The 0.25 per cent drop brings the official cash rate in New Zealand to 5.25 per cent, with the RBNZ flagging it is now forecasted to be below 4.5 per cent by the middle of next year — a level Australia's cash rate has not reached in this cycle.
Australian house prices have continued to rise, but the real estate market is showing signs of slowing, according to new data. Ms Zollner said there was another green shoot starting to unfurl in the country's real estate "super city". "First-time buyers are very active right now. They're pretty much running at record highs in terms of market share. So, there's always two sides to the coin," Mr Davidson said."If you're thinking about buying a typical rental property right now, the rent you get will nowhere near cover the mortgage," Mr Davidson said.