There has been great activity in the real estate world in the past few months and it is interesting to see the first home buyers and investors re-entering the market. We attribute this to a number of things:
1. Interest rates are as low as I ever recall and that excites people, particularly investors who are receiving a higher yield than they are in interest from banks
2. There is a good supply of property for sale in both markets – first home and investors
3. Investors have seen their wealth grow through increasing values of property giving them more equity to borrow against for further investment.
The OCR is rumoured to change (at time of writing this there has been no announcement) which will further fuel buyers into action. The only area of concern is with the banks. They are taking a much more cautious approach as far as security on lending goes and rightly so if history is anything to go by.
All in all, a busy time for everyone leading into Christmas.