Ray White Now New Zealand 19.10.2020 Version 22 - 19 October 2020 - Page 16


There are many reasons for the current buyer demand . The most significant of these reasons relate to finance . Interest rates are playing an even more powerful role in determining house prices than previously anticipated . When interest rates eventually do rise , the forces that have driven New Zealand house prices ever higher over the past decade will go into reverse , however this is not anticipated any time soon .
With interest rates at all time lows and with banks being supportive of purchasers , we are seeing many buyers wanting to take advantage of these factors .
Obtaining secure credit on excellent terms while it is available is certainly influencing demand . This is not only the case with first home buyers but across all sectors of the market , which have also been helped by the easing of LVR restrictions for the short-term .
Fortunately , we continue to see confidence in buyers with job security working in industries not materially impacted by the current economic environment .