Leonie's blog

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Quick news/update

1. Interest Rates – The Reserve Bank increased the Official Cash Rate (OCR) yesterday by 25 basis points (from 2.75% to 3.0%), though Alan Bollard’s comments took on a softer stance than last month, signalling a slower and more gradual path of increases ahead, given the weaker economic recovery*. With an OCR of 3.0%, we continue to be in monetary policy stimulation mode, as prior to the financial crisis the OCR had not gone below 4.5%. In a nutshell we should expect to enjoy lower interest rates for longer, relative to historical levels …yay! The Reserve Bank does, however, have an eye on reigning in potential inflation ahead and this may see a similar level of OCR increase in 6 weeks time.
2. Household Growth – The number of households in NZ is projected to increase an average of 1.2 percent a year between 2006 and 2031, exceeding projected population growth of 0.8 percent a year. Households are projected to increase from 1.55 million in 2006 to 2.09 million in 2031, with one or two people households projected to account for nearly all this growth. Why? More couple-without-children families mainly due to the large number of people born during the 1950s to early 1970s reaching older ages**. I am meeting more people looking to downsize, and some demand pressure is expected to come onto 1-2 bedroom homes alongside this trend. Now is a great time to get ahead of the wave! If you hear of anyone thinking of downsizing, put them in touch for a no-obligation and free market opinion (Leonie 027 664 6063).
3. All things Property – My job is to make your real estate experience easy and successful.  If you or anyone you know wants more information on the property market then check out my website.  There you will also find useful and free resources, which I continue to add to.  Please pass the link onto anyone we can help (www.leoniesnook.com). And if you need real estate advice at any time just drop me an e-mail (leonie@leoniesnook.com) or call (Leonie 027 664 6063).

* Economic growth is happening, and was 0.6% for the March 2010 quarter, up 1.9% on the same quarter last year. Economists expect GDP growth to reach around 3.0% this year.
** Statistics New Zealand Media Release - July

Leonie Snook, Top Wellington Real Estate Agent, Harcourts Active Wellington (REAA 2008)

What a great surprise this week to be recognised as #1 in Wellington and in the Top 5% of Harcourts Agents across the country at the Harcourt’s Awards!!

Most importantly it means my clients are achieving greater real estate success and better results, and this is why I do it!

These awards are shared with my supporters as if it wasn’t for your belief in the fresh and innovative approaches I use this success wouldn’t be possible. Thank you for all your support to-date and if you know anyone thinking of selling in the future, please pass my details on. Your recommendation is my biggest compliment! And I love giving referral rewards :-)

THANKS!

Leonie Snook, Top Wellington Real Estate Agent, Harcourts Active Wellington (REAA 2008)

Interest rate moves - Fixed mortgage rates from all the major banks dropped last week reflecting lowered global interest rates. This is a moving dynamic, however, with the Reserve Bank expected to increase the official cash rate (OCR) again on 29 July by 25 basis points (from 2.75% to 3.00%), followed by further gradual increases in step with the economic recovery.  Now is a good time to review your mortgage lending to ensure you are getting the best deal. I use an excellent mortgage broker who my clients have used with great feedback. If you want independent and quality advice just drop me an e-mail…it may save you a lot of money! Email me at - leonie@leoniesnook.com.

Leonie Snook, Top Wellington Real Estate Agent

Wellington property market stable - Wellington’s property market continues to attract sellers with 766 new listings in June (up 29% on June 2009)**, though overall sales volumes remain subdued with 548 sales in May (down 19% on May 2009)***.  2008 and the recession saw the property market bottom out…followed by a strong recovery over the second half of 2009…then stabilising and flattening out over the first half of 2010.  With 23 weeks of housing stock on the market (against a long-term average of 21 weeks)**, the Wellington market is skewed slightly towards buyers. For sellers it is a good time to sell, but only if you follow the right plan!  If you, or your friend, family member or work mate want to know how to get top results in THIS market, call me anytime for real estate advice (Leonie 027 664 6063).

** REINZ Property Report (July 2010)
*** REINZ Market Trends Report

Leonie Snook, Top Wellington Real Estate Agent

Economic recovery slow – Good news…the economic recovery is real and on-track (now four quarters of positive growth)! International credit rating agency Moody’s is upbeat about NZ, expecting a ‘strengthening upswing and self-sustaining economic expansion during 2011 and 2012’. Leonie says the Rugby World Cup won’t hurt either :-) . Our export sector is leading the charge, and Moody’s note ‘NZ is well placed to continue benefiting from Australia and Asia’s strong growth prospects, though at this stage the non-exporting part of the economy remains subdued’. Bad news is the recovery is very slow with some indicators easing off :-( . While business confidence is at a good level and consumer confidence has improved*, consumer spending has remained weak so far, and the tax cuts in October will be a much needed shot in the arm. Infometrics is forecasting economic growth to peak at 4.7% in the year to March 2012, before easing off to about 3%.  This is good for the medium term property market.

* UMR Consumer Comfort Index (July 2010) & National Bank of New Zealand Business Outlook Survey (June 2010).

Leonie Snook, Top Wellington Real Estate Agent