Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

Real Estate and John Key. Prime Minister of New Zealand.

Posted by Steve Koerber on November 7, 2008

Congratulations to the National Party’s John Key  – the new Prime Minister of New Zealand.  New Zealand voters tonight decided on a change of direction and a major swing to the right ousted the incumbent, Labour’s Helen Clark, after nine years at the helm.

Based on my experience of previous election results, the win by National will give the real estate market a short term lift in confidence.  A combination of factors, including falling interest rates and more affordable housing should also serve to stabilise the market between now and the end of the year.  I expect sales volumes will increase about 10 – 20% compared to historically low numbers over the past few months.

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3 Responses to “Real Estate and John Key. Prime Minister of New Zealand.”

  1. Deon said

    Steve, Do you think that although the new governement we are still in for some hard and interesting times. With higher unemployment, the Amerian Elections and Looking at interest rates droopping fast around the world do you think buyers will sit on their money and wait further for our rates to drop more?

  2. Hi Deon,

    I agree things are not looking to rosy for a while. It’s interesting to look at it from an investor’s point of view though. If term deposit rates drop below 5% sometime in the near future, which seems probable, property will start to look better than money in the bank. The time is coming…

  3. Deon said

    Thanks Steve,

    Your very right in saying that, It is coming and comng probably failry quik.

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