House prices expecting a jump start

Street view of houses in Auckland central

The ASB House Price Forecast has shown a small increase of 0.9% nationwide from 2018, with the most noticeable shift being Auckland, where the price has decreased by 3.1%.

However, Mike Jones, a senior economist from ASB has recently quoted: "Sharp falls in mortgage interest rates, combined with still-strong population and labour income growth" will give a jump start in the Auckland housing market.

With the Reserve Bank's recent OCR cut to "slash rates until kiwis start borrowing and spending again" approach, and "term deposit rates moving more towards zero", we may start to see more and more kiwis allocating their assets in housing.

Once again, now may be the best time for first home buyers to push into the market before the market slowly corrects itself.