Market Update

Hot rates as OCR stays cool.

The price of borrowing is likely to remain low for some time, with the official cash rate (OCR) once again on hold at its historic low of 1.75% – with indications that it won’t budge for a year or two.

The Reserve Bank is feeling cautious about the economy, saying the next move could be either up or down. That’s giving lenders the confidence to cut mortgage rates, with lenders continuing to offer record low rates and attractive cash incentives.

SuperCity had a record month in September, helping our clients to secure $60 million in loans. There have been many homeowners trading up, home downsizing, loads of renovations, a consistent stream of first-home buyers and refinancing.

As usual, the team at SuperCity can generally secure better than advertised rates. Because we have great relationships with all the major banks and are constantly reviewing the best offers received across our 13 mortgage advisers we have access to information the general public simply don’t when negotiating rates and cash incentives. Between this and a range of other benefits that come from using an independent adviser it is no surprise we’ve been seeing growth in our market share, as more and more New Zealanders try using a Mortgage Adviser and recommend it to others. If you know someone who could use some help with applying for a home loan or reviewing an existing mortgage, let me know and I will give them a call.

Massive Spring jump in listings.

The Auckland house market has been sitting steady for the past year, growing 0.8% between September 2017 and September 2018. This is exactly the outcome most of us were hoping for during the boom of 2012 to 2016; rather than a crash, the market has flattened and stayed flat while wages are increasing and more first-home buyers are entering the market.

Overall, slowing down a rampant property market was a key driver for central government and so far so good with no dramatic decline in house prices around the country.

The number of new listings on the market has seen a serious spring jump, with total listings up 11.7% and Auckland listings up a whopping 31.9%. Barfoot and Thompson says Auckland listings are the highest they’ve been in seven years. Asking prices nationwide have reached a new record high of $690,733 while the number of available rental properties is down by 3%.

All this bodes well for the market heading into 2019 – if you’re buying you’ll have plenty of choice and not too much pressure, so you’ll have enough time to do your due diligence before you buy. As a seller, you can feel more confident about putting your house on the market in the knowledge that there will be lots on offer for you to buy. If you’re an investor, you might still be feeling slightly nervous, but with prices flat, rents rising and demand for rentals outstripping supply, this is arguably the best time to buy in the past three years.

When it comes to moving money internationally, are you really getting the best rate?

The reality for retail banking clients looking to transfer money internationally is that the daily buy/sell rates set by the banks incorporate a cost to transact plus additional sending and receiving fees. That’s why SuperCity Mortgages and Insurance have partnered with XE to ensure our clients can take advantage of a better alternative to the banks when meeting their international payments needs.

For 25 years, XE has been the world’s trusted currency authority. Last year alone, XE was used by more than 300 million people to access information about currencies that matter to them and more than 350,000 people used XE Money Transfer to transfer money overseas.

XE clients enjoy:

  • Fee free money transfers at bank-beating rates – XE clients regularly save of dollars compared to the bank rate on offer
  • 24/7 online account access – opening an account is free, easy and takes less than 5 mins
  • No minimum or maximum transfer amounts
  • A full suite of risk management options including market orders and forward exchange contracts
For preferential exchange rates, simply email me for an introduction to the very helpful and experienced Manager, Simon Kelly.

Refer a friend – we’ll gift you $100, and gift them $50!

SuperCity Insurance has grown entirely through word of mouth recommendations from clients sharing the love about our services. And to show our appreciation, we like sharing the love back!

Simply share my contact details with friends, family or colleagues, and if they become a client, we’ll gift you a $100 Prezzy card and gift them a $50 Prezzy card.

We love helping people protect their financial wellbeing – and we’re really good at it – we’ve continued to maintain a successful 100% claims paid record and look forward to helping your friends also have certainty for uncertain times.

T&Cs

  • What’s a successful referral? It’s when you refer someone to SuperCity Insurance, and they take up an insurance policy (ie Life, Medical, Trauma, Income Protection, Mortgage Protection cover)
  • What’s the best way to refer? Simply call me with your friends contact details or introduce us over email and I’ll take it from there.

Contact
Jaime James |Director & Principal Insurance Adviser
021 527 069
jaime@supercityinsurance.co.nz

Would you like a review? Needs some advice or help with a claim?  Please contact us so we may assist you.