Investors may sit back and wait for further cuts to the Official Cash Rate as first home buyers surge into the housing market.
The Cotality Monthly Housing Chart shows first home buyers account for 27% of market activity in July – the highest proportion in 20 years.
The Reserve Bank this week cut the OCR another 25-basis points to 3%.
Cotality NZ Chief Property Economist Kelvin Davidson told Mike Hosking first home buyers are taking advantage of a quiet market as others hold off.
He believes a reason people are waiting is job uncertainty and the labour market.
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The Mike Hosking Breakfast