The Budget (17 May) contained three announcements that were of interest to the Federation.
Kiwibank has ended its two week price-cutting campaign designed to attract business from borrowers refinancing off maturing fixed rate deals.
Dwelling unit approvals look to be trending back upwards in a move that could add to pressure on the Reserve Bank to lift interest rates at its review next Thursday.
In the feature article of the May issue of ANZ's Property Focus, the simple demand-supply housing balance measures across the regions highlight Auckland and Wellington as areas where the market remains tightest. Conversely, a turning point is not too far away in the majority of regions, noteably Gisborne, Hawke's Bay and Taranaki.
Last week had with some good news for borrowers with Kiwibank dropping some of its fixed rate home loans in an effort to capture some of the refinance business in the market.
Lifestyle property prices are surging matching the demand for houses in town.
Property speculators who are reaping millions of dollars from the super-heated housing market are about to feel the heat from a tough new crackdown.
Press release by the Hon Dr Michael Cullen, Minister of Finance
Kiwibank has cut its fixed rates loans in a two-week marketing campaign aimed at attracting borrowers refinancing from loans fixed two or three years ago.
Anne Gibson reports in the NZ Herald that New Zealand's biggest housing market is in the grip of a slow down.
There have been further cuts to fixed rates over terms of two to five years from some finance companies and non bank lenders over the past week but some one-year rates have increased. The major banks, however, are maintaining identical rates over all terms.