The Reserve Bank Governer, Allan Bollard, has today left the OCR at the level of 2.5%. You can read the media release on the release here on stuff.co.nz

The leading economists like Tony Alexander from BNZ has commented here that he is of the belief that interest rates are going to move upwards starting from September – earlier than the previously predicted December or Early 2012 when the Christchurch rebuilding begins.

Comments made below by Allan Bollard are also along the same lines.

[box] “Provided current global financial risks recede and the economy continues to recover, the bank sees little need for the March 2011 ‘insurance’ cut to remain in place much longer,” Governor Alan Bollard said this morning.[/box]

What does this mean for the property market? Buyers that have been previously sitting on the fence are now expected to act and to act more aggressively. Sellers that have been ‘hanging on’ with the lower interest rates may also now act with putting their properties on the market.

The market conditions and supply vs demand dynamics may change to as a number of properties come on the market.  Currently the issue that has been holding the market back here on the North Shore is a lack of quality stock which may change if/when the interest rates are increased and more urgency is instilled into the market.

If you are considering selling and would like some advice on a strategy going forward, please feel free to contact me to arrange  a suitable time.