Categorized | International

Low Interest Rates Have Positive Impact on New Zealand Property Market

Please Share!

The New Zealand residential real estate market continues to perform well, as prices are on the rise. The market’s performance is in sharp contrast to some of the world’s largest markets in the United States and Europe.

Analysts cite two reasons as to why New Zealand’s market continues to produce strong results. Interest rates continue to remain low despite the flourishing market. In addition, mortgage loan affordability is rising, as banks are not making loan restrictions impossible as they are in other nations.

With lower interest rates, owning a home is becoming far more likely for many, as monthly costs are kept down. Just five years  ago, it took roughly seventy-two percent of one’s income to pay the mortgage on a home. That number has since dropped to fifty-two percent in the last month.

Bank rates for mortgage loans continue to drop, as many banks are watching the possibility of a European debt crisis very carefully. Homebuyers are taking advantage of the lower rates, as more homeowners continue to upgrade, thus providing for a healthy real estate market.

Housing affordability in some areas has dropped, as prices are beginning to hit astronomical levels. With that said, there are many other areas in New Zealand that are performing at levels stronger than ever.

Analysts predict that the numbers will continue to be strong around the country in the coming months, as interest rates will likely remain at low levels, and overall performance continues to exceed previous expectations. As homeowners continue to buy and sell, the residential real estate market will continue to achieve strong results.

Please Share!

About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

Leave a Reply

Twitter Chat