In a reply, CEO of New Zealand's biggest realty firm Hayden Duncan stated although banking institutions might be making it simpler for property buyers there are a lot of constituents contributing to this `housing recovery' other than lower rates of interest.
The company’s CEO said that lower rates of interest are giving realty buyers financial relief, which is welcome, however it is not the only stimulant driving property volume increases.
"These increases in volumes need to be put into context as they were unavoidable given the fifteen year lows that the real estate market is currently coming out of."
"Now a combination of a solid economic platform - with projected growth in the economy - is driving business confidence along and the rural sector, in the best shape it's been for 5 years, are amongst the main drivers of household confidence."
"There is a pent up demand for housing which undoubtedly creates an unsustainable level of demand vs. supply, growth and activity, says Mr Duncan," but the sweeping generalisations of a flying real estate market are unfair on most markets outside of Auckland and Christchurch. Provincial markets like Wellington, Hamilton and the Bay of Plenty are still not seeing the increased activity that Auckland and Christchurch are seeing but growth is evident, as in mentioned in the MarketWatch for June 2012."
So as lower rates of interest actuate purchasers to be active, and sellers to list Harcourts said they are witnessing individuals out to sensibly purchase property having learnt lessons from 2007.
In context of the entire financial picture, a lot of factors make the verdict to buy property a good one.
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