Campbell Dunoon: LJ Hooker Group Head of Network NZ on the impact of the OCR cut on the property market

An OCR cut could be behind an incoming boost in property market activity. 

The Reserve Bank's cut the Official Cash Rate by 50-basis points to 4.75%.  

Banks have lowered home rates in response to the cut. 

Finance Minister Nicola Willis is celebrating the move as fantastic news and sees it as a sign inflation is under control. 

LJ Hooker's Campbell Dunoon told Ryan Bridge this year's market has been cautionary 

He says the stock has been there, and this will give buyers a nudge to participate. 

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Episode Transcript

Speaker 1 (00:00):
Here's an intersting number. Half of us are on either
floating or fixed for less than six months. We are
just crutch hold weight and to pounce on a lower
interest rate. And west PAC's cut by ten basis points
after the OCR drop yesterday. They're one year special rate
to six point one nine percent. That's the same as
Asb's now their two year rates five points six to

(00:20):
nine percent. The variable rates have been cut by fifty
basis points. What does it mean for house prices? Campbell
Dunoon is the Old Day Hilker Group, Head of Network
New Zealand. Good morning, Campbell, thanks for being on the show.

Speaker 2 (00:32):
Good morning Ryan, nice to be here.

Speaker 1 (00:34):
What do you think this is going to do to
prices and win?

Speaker 2 (00:38):
Well, big question, But firstly, I think it's just fantastic news.
It's news we've all been waiting for its effect on prices. Well. Look,
I guess at the end of the day, it should
increase more activity, more participation from people in the property market,
and that could lead to something more positive in prices
heading into next year. I think this year is a

(00:59):
bit of weight and a bit of caution still, but
looking good for twenty five.

Speaker 1 (01:03):
So there's no flood of vendors have been lining up
waiting for the sun to shine and Adrian Or to sing.

Speaker 2 (01:10):
Well, we've seen an increase in stock this year, in
the last half of this year, which is good, and
we're heading into the Christmas period and we're seeing more
indications of that coming along. So the stock has been there,
we're just waiting for the buyers and I think this
is just going to give them the nuts just to participate.
So again I think if you're looking to buy now,
it's probably a good time, and next year I certainly

(01:33):
see much more activity.

Speaker 1 (01:35):
Now would probably be the better time though, right while
prices are still quite suppressed, and before you get the
floods if they come from the cuts that will come
in November and then probably February March.

Speaker 2 (01:48):
Yeah, it's always funny. People always try and pick the
bottom of the market, but look, it's been quite quite
average for nearly two years now, and I think we're
just with the signs, with the interest raids, the general
mood in the country, which I also think is important
heading into sum Right, Look, if you're going to buy,
if you see the house that you like, if you've
done all your due diligence. I'd be jumping in now

(02:12):
because next year you could have a bit more competition
for the property.

Speaker 1 (02:15):
Thanks so much for your time, Campbell donon with us
al Ja Hooker, Group head of Network New Zealand after
the fifty basis point count to the OCI yesterday.

Speaker 2 (02:23):
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