April and early May saw the regional markets continue on their path of outperforming Auckland sales.
Hawkes Bay, Southern Lakes and Tauranga deserve a special mention for impressive sales and with recent government policy changes, vendors can be comfortable that this strength in the regional markets should continue into coming months.
Buyers should also be encouraged by two recent events: the reversal of the Capital Gains Tax proposal and the OCR dropping to a record low of 1.5%. Westpac's economist Dominick Stephens explains, "Mortgage rates have plunged over the past two months, and today's OCR cut will cause them to fall further. We think the consequence will be an upturn in the housing market, starting in the second half of 2019."
We agree with this sentiment but aren't getting carried away, as risks are easing but headwinds are still at play. We expect buyers to be optimistic yet cautious as the cycle continues its transition and vendor pricing needs to remain accurate.
You can read full regional data and analytics here.
On a company note, we are very pleased to announce our record-breaking result for FY2019 of $1.037 Billion. With only 115 Licensees this is great recognition for our hard working and high performing team. Well done all!
Mark Harris & Julian Brown