Reserve Bank

PHOTO: The Reserve Bank of New Zealand. FILE

Rowan Dixon, Acting Chief Executive at REINZ says: “The Reserve Bank’s announcement today of a 50 basis points increase to the OCR is the fourth consecutive double-hike from the bank, taking the OCR to 3.0%.

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“As inflation persists, an increase to the OCR is expected. REINZ’s July data shows that while the median property price is showing an annual decrease, affordability remains an obstacle for many — driven by rising interest rates, inflation, and tighter lending criteria. Sales counts have also declined across the country by 36.7% — in part due to higher mortgage interest rates, LVR’s and tightened lending criteria once again.


“This creates a challenge for many buyers. Increased borrowing costs mean that securing finance and debt servicing will continue to impact on their ability to enter the market,” concludes Dixon.