Why do I think that now might be a good time to sell and buy in Feilding, and the Manawatu /Rangitikei?
Firstly, our values are steady, unlike Auckland and Christchurch in particular.
Secondly, our values are very affodable compared with most of New Zealand.
Thirdly, interest rates are very low, and are very likely to increase. We don’t know when.
Fourthly, the Government is considering increasing the equity to loan ratio for mortgages. This would mean that Buyers will need a larger deposit. We all know how hard it is to save a deposit, particularly if you are paying rent. Doubling, or quadrupling the amount needed to save will be impossible for many.This would reduce the number of buyer prospects for Sellers. Properties may take longer to sell, and prices may ease.
Prices may increase however. They may go up, or they may go down. There are many influences on our market currently, including international influences. The likely value movement locally for the next few years is difficult to predict. I am quietly confident of a gradual increase, but if the Government interferes to pour cold water over the Auckland market, all bets are off.
We saw this several times in the past, in the 1990′s, when Auckland and parts of the country were experiencing rising values, and we in our region weren’t, We in our region were penalised by the tool that the Government used to slow the market in the “heated” areas. Our market struggled. Similarly, 2 – 3 years ago the banks required large deposits from Buyers and our market was at rock bottom for activity.
We know the “state of play” right now. Often “better the devil you know.”
If you are thinking of selling, or buying, now could well be as good as its going to get!