The Reserve Bank today left the Official Cash Rate (OCR) unchanged at 2.5 percent.
The ongoing trevails of Europe were noted in the announcement as was “Offsetting these negative influences, housing market activity continues to increase, supported by recent reductions in mortgage interest rates. In addition, repairs and reconstruction in Canterbury are expected to substantially boost construction sector activity in coming quarters. Aggregate GDP growth is projected to pick up slightly to just over 3 percent next year. Given this economic outlook, inflation is expected to settle near the mid-point of the target range.”
The Auckland housing market continues to travel along with what appeared to be a reasonably standard 3 bedroom bungalow @ 55 Paice Ave in Sandringham selling under the auction hammer @ $1,090,000 yesterday.
Barfoots Residential Sales from the past 12 months to May 2012 totalled 10,090 properties with a total value of $5.5 Billion. This is well up on the to May 2011 figures of 8,252 properties @ $4.4 Billion.