With the election looming at the end of the week, some reshuffling by WestpacTrust and BankDirect has been the only fallout so far from higher official interest rates.
WestpacTrust has announced changes to its floating rate that won't take place until well after the election (December 7) for new loans and after Christmas (December 29) for existing ones. That rate will rise from 6.75 per cent to 7.25 per cent, while some of the bank's fixed rates fall immediately (click here for details).
Meanwhile, BankDirect twitched its variable rate from 6.25 per cent to 6.50 per cent the day after the Reserve Bank boosted the OCR.(see earlier story)
Homeowners have been cautious about taking on new loans anyway ahead of the election, with the Real Estate Institute of New Zealand reporting lower sales prices and volumes last month than in September. Sales were down to 6,181, compared with 6,606 in October 1998.
However, the Institute still thinks the market is relatively stable and says that "well-priced" properties are continuing to hold their value nationwide.
Median price comparisons (total dwellings)
| Region | October 1996 | October 1997 | October 1998 | September 1999 | October 1999 | | -------------------- | ---------------- | ---------------- | ---------------- | ------------------ | ---------------- | | Northland | $121,000 | $135,000 | $143,000 | $149,500 | $139,000 | | Auckland | $223,000 | $238,000 | $225,000 | $240,000 | $232,000 | | Waikato/BOP/Gisborne | $138,000 | $152,000 | $150,000 | $162,250 | $157,000 | | Hawkes Bay | $121,300 | $120,000 | $119,000 | $121,750 | $127,000 | | Manawatu/Wanganui | $94,000 | $95,000 | $95,000 | $105,000 | $110,000 | | Taranaki | $95,000 | $95,550 | $95,000 | $94,500 | $91,500 | | Wellington | $143,725 | $165,000 | $165,000 | $176,211 | $178,000 | | Nelson/Marlborough | $136,250 | $140,500 | $145,000 | $138,000 | $150,000 | | Canterbury/Westland | $132,250 | $140,000 | $143,000 | $145,000 | $150,000 | | Otago | $102,500 | $90,000 | $92,000 | $97,000 | $100,000 | | Southland | $78,000 | $75,151 | $72,000 | $78,000 | $81,500 | | NZ Total | $155,000 | $165,000 | $165,000 | $170,000 | $168,000 |
Source: Real Estate Institute of New Zealand
