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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)