Tide may be turning
Page 1 of 2 ........5:00AM Sunday May 18, 2008
By Jacqueline Smith
A surge in house-buying last week has prompted warnings that first-home buyers holding out for a bargain should get in before they miss out.
This follows predictions major banks will lower interest rates and the official cash rate may fall by September. Kiwibank was the first to lower its two-year mortgage rate below 9 per cent, announcing on Friday a drop from 9.29 to 8.99 per cent, and sparking speculation that its competitors will follow suit.
Peter Thompson, director of Barfoot & Thompson, says Wednesday's auction room was busy and properties fetched prices above the reserve. "People are starting to think, 'is it the time to start buying or not', rather than 'don't even look'."
Real estate agents contacted by the Herald on Sunday expect sales to climb over winter. They recommend first-home buyers start hunting for good deals now as they will be closely tailed by investors lured out of hiding by sliding interest rates.
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