News release: December 9, 2008
Interest rate cut expected to positively impact massive pre-Christmas property auction
With cut-price mortgage interest rates set to re-ignite the domestic real estate market, Bayleys Canterbury is expecting bidding from buyers when the company puts 19 properties under the hammer this week.
Bayleys is holding its third annual Gala Auction on Thursday at its Merivale office, and is hoping last week’s decision by the Reserve Bank to slash the official cash rate will encourage more buyers out of the wood work.
“Now that buyers know they’re going to get a much better deal on a mortgage than when rates were up above 10 per cent earlier this year, they can start looking at properties more positively,” says Bayleys Canterbury CEO Scott McCrea.
“With bank deposit rates falling substantially in line with the lowering of the OCR, and the sharemarket still reflecting a considerably degree of nervousness among investors as they wait for the full effect of the economic slow down to filter through to companies’ annual reports, Mr Bollard has put real estate back on the New Zealand agenda.
“This is the first big chance Christchurch buyers have had to make the most of the 1.5 per cent OCR cut,” he adds.
The Bayleys Gala Auction is a regular pre-Christmas event designed to showcase Canterbury’s property market under one roof. A wide cross section of properties is on offer - from investment properties to upmarket family homes.
“It’s really popular with vendors who understand the power of the auction process, and buyers looking for a great deal appreciate the auction process too. It’s an excellent marketing method to bring both the vendor and the prospective purchaser together to do some real business,” says Mr McCrea.
“We have a commitment to our vendors to be more pro-active than any other real estate company, to really get their property in front of all prospective buyers, and to subsequently give it the best chance of selling well in a positive and vibrant atmosphere.
“That’s more important this year than ever before, and we’re all looking forward to a great day on Thursday,” he adds.