Latest / Early Edition with Ryan Bridge / Campbell Dunoon: LJ Hooker Group Head of Network NZ on the impact of the OCR cut on the property market

Transcript

Campbell Dunoon: LJ Hooker Group Head of Network NZ on the impact of the OCR cut on the property market · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Here's an intersting number. Half of us are on either
• 0:03
  Speaker 1: floating or fixed for less than six months. We are
• 0:06
  Speaker 1: just crutch hold weight and to pounce on a lower
• 0:10
  Speaker 1: interest rate. And west PAC's cut by ten basis points
• 0:13
  Speaker 1: after the OCR drop yesterday. They're one year special rate
• 0:16
  Speaker 1: to six point one nine percent. That's the same as
• 0:18
  Speaker 1: Asb's now their two year rates five points six to
• 0:20
  Speaker 1: nine percent. The variable rates have been cut by fifty
• 0:23
  Speaker 1: basis points. What does it mean for house prices? Campbell
• 0:26
  Speaker 1: Dunoon is the Old Day Hilker Group, Head of Network
• 0:28
  Speaker 1: New Zealand. Good morning, Campbell, thanks for being on the show.
• 0:32
  Speaker 2: Good morning Ryan, nice to be here.
• 0:34
  Speaker 1: What do you think this is going to do to
• 0:35
  Speaker 1: prices and win?
• 0:38
  Speaker 2: Well, big question, But firstly, I think it's just fantastic news.
• 0:41
  Speaker 2: It's news we've all been waiting for its effect on prices. Well. Look,
• 0:47
  Speaker 2: I guess at the end of the day, it should
• 0:48
  Speaker 2: increase more activity, more participation from people in the property market,
• 0:53
  Speaker 2: and that could lead to something more positive in prices
• 0:56
  Speaker 2: heading into next year. I think this year is a
• 0:59
  Speaker 2: bit of weight and a bit of caution still, but
• 1:01
  Speaker 2: looking good for twenty five.
• 1:03
  Speaker 1: So there's no flood of vendors have been lining up
• 1:06
  Speaker 1: waiting for the sun to shine and Adrian Or to sing.
• 1:10
  Speaker 2: Well, we've seen an increase in stock this year, in
• 1:13
  Speaker 2: the last half of this year, which is good, and
• 1:15
  Speaker 2: we're heading into the Christmas period and we're seeing more
• 1:17
  Speaker 2: indications of that coming along. So the stock has been there,
• 1:21
  Speaker 2: we're just waiting for the buyers and I think this
• 1:23
  Speaker 2: is just going to give them the nuts just to participate.
• 1:26
  Speaker 2: So again I think if you're looking to buy now,
• 1:30
  Speaker 2: it's probably a good time, and next year I certainly
• 1:33
  Speaker 2: see much more activity.
• 1:35
  Speaker 1: Now would probably be the better time though, right while
• 1:37
  Speaker 1: prices are still quite suppressed, and before you get the
• 1:42
  Speaker 1: floods if they come from the cuts that will come
• 1:45
  Speaker 1: in November and then probably February March.
• 1:48
  Speaker 2: Yeah, it's always funny. People always try and pick the
• 1:51
  Speaker 2: bottom of the market, but look, it's been quite quite
• 1:56
  Speaker 2: average for nearly two years now, and I think we're
• 1:58
  Speaker 2: just with the signs, with the interest raids, the general
• 2:01
  Speaker 2: mood in the country, which I also think is important
• 2:04
  Speaker 2: heading into sum Right, Look, if you're going to buy,
• 2:06
  Speaker 2: if you see the house that you like, if you've
• 2:08
  Speaker 2: done all your due diligence. I'd be jumping in now
• 2:12
  Speaker 2: because next year you could have a bit more competition
• 2:14
  Speaker 2: for the property.
• 2:15
  Speaker 1: Thanks so much for your time, Campbell donon with us
• 2:17
  Speaker 1: al Ja Hooker, Group head of Network New Zealand after
• 2:20
  Speaker 1: the fifty basis point count to the OCI yesterday.
• 2:23
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• 2:26
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• 2:29
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