Lower than expected inflationary figures suggest interest rates may hold for longer than anticipated. A rise in the OCR was expected around March 2015 however economists are suggesting it may happen now.
The rate of inflation during past 12 months was just 1 percent and September lower than that at 0.3 percent. Interest rates may hold for up to twelve months and this is good news for property buyers.
Short term fixed rates for home loans are tipped to fall over the coming months. The banks will probably be falling over themselves to achieve the best rate. First Home Buyers may get on the first rung of the Property Ladder as a result.
Matt Power of Property Experts says there’s a lot of activity going on right now in his market. As a licensed Real Estate Agent and property finder predominately in the Christchurch region he says there’s high demand for properties for investment. Demand is outstripping supply.
Christchurch is being innovate in how it creates homes too. There’s the container homes for example – residential homes built out of shipping containers. The idea originating from the use of the shipping containers as commercial premises post the earthquakes.
The new low cost homes under $400K are well underway to with 90 due for release soon. The medium house value in Christchurch last month was$425,000.
The lower inflation is also said to have a positive impact of fuel and food with both predicted to drop in cost over the coming months…..hopefully in time for Christmas.
This blog article was written for PropertyBlogs by Mobilize Mail.