PHOTO: The dream of owning a home is getting further out of reach for many. TVNZ
With the housing market defying all economists’ predictions – still on the rise amid the Covid-19 pandemic – there are calls for the Reserve Bank and Government to do more to ease the pressure on buyers.
“It’s very, very busy – there’s not much stock on the market and a lot of buyers,” Ray White Real Estate salesperson Mark Prunty said.
A few months ago, economists were forecasting double digit drops in house prices – now they are predicting double digit increases.
Part of the demand is driven by low interest rates, designed to stimulate economic growth. With rates set to go even lower, housing appears a good place to make and invest money.
Additionally, the Reserve Bank is considering a funding-for-lending programme to make it cheaper for banks to borrow money.
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