Another big interest rate drop! But should you wait for more?

Sales stay slow, but there’s signs of growth

• Optimism is creeping in to the Auckland property market
• The backlog is shrinking and the pace is picking up
• It could be a big summer ahead

See what we and our experienced buyers are thinking in this 4-minute video.

Interest rates are racing to new lows

• A big drop in rates this month, and another one expected for November
• Refinancing has never looked so attractive
• If you’re looking at a new loan, should you fix or float?

We cover all the ups and downs in this 3-minute video.

“Ready, fire!” is better than “Ready aim, aim, aim…”

I’ve recently been hearing from a lot of real estate agents that buyers are waiting for rates to drop even more before they pull the trigger on buying a new property.

Well fair enough. Rates are dropping, but they’re still higher than the golden days of 2021. But let’s be honest. Those super-low post-Covid rates were not normal. They’re not coming back. The truth is that the new normal is just like the old normal: around 5-6%.
Meanwhile, the property market is in a slump. Prices are subdued, the time to sell is longer than ever, and there’s a big backlog of property with some increasingly desperate sellers. In short, it’s a buyer’s market.

As a buyer, you have the opportunity right now to negotiate lower prices, longer settlement and better terms.

But the market can turn around fast. The summer buying season is coming. Rates are lower, the dollar is lower, and we can expect a surge in interest from locals and from overseas.

So if you’re thinking about buying your next home, your first home or an investment property, waiting for lower rates could be a big mistake. Sure, you’ll save a little on repayments until rates go up again. But buy now at a lower price and you’ll pay less forever. You’ll also buy low and enjoy capital gains as the market recovers, which could lead to a very successful renegotiating of your loan terms.

Want to talk more about achieving your property goals? Reply to this email or press the button (if you’re reading this on your mobile) and let’s see what we can do for you.

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