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Speaker 1: So first home buy is account of for twenty seven

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Speaker 1: percent of the market in July. This is way above

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Speaker 1: their long term average of twenty one to twenty two percent.

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Speaker 1: And your movers, these are your owner occupiers selling and

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Speaker 1: rebuying pretty consistent, same levels we've seen we saw during

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Speaker 1: the global financial crisis. So this is new data out

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Speaker 1: this morning from Cotality. And David Cunningham is Chief Squirrel

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Speaker 1: at Squirrel Mortgages. David, good morning. Hey, right, so they're

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Speaker 1: getting on the ladder. What are they buying?

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Speaker 2: Well, how'ses?

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Speaker 1: What are we? Units?

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Speaker 2: Are?

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Speaker 1: Are we you know small ones?

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Speaker 2: No? Well, the thing about the first time buyer market

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Speaker 2: at the moment is it's really a goldilocks market. They've

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Speaker 2: got so much choice because there's a lot of stuff

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Speaker 2: on the market. Fircelely, there's no urgency because houses aren't

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Speaker 2: selling as fast as they were. You know, go that

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Speaker 2: three years, you know, post COVID, if you didn't make

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Speaker 2: an offer, you know when you saw the house, it

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Speaker 2: was gone. So you've got time. You've got choices on

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Speaker 2: interest rates come down, keep you savor balances are higher,

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Speaker 2: and you've got less competition from both investors and and

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Speaker 2: and movers. Too, so you know Goldilocks time. It's a

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Speaker 2: bit like the farmers actually, and.

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Speaker 1: You want to get in there quick, done you before

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Speaker 1: prices start going back up again. The race I've further down.

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Speaker 2: Yeah, yeah, yeah, Look, coming back back to your earlier question,

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Speaker 2: what are they buying? Well, they've got choice, so you

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Speaker 2: know they are buying. You know, it's typical. When I

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Speaker 2: bought my first house, it was a bit of a

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Speaker 2: do up and and you know the beauty is that

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Speaker 2: there's time to time to time to sort of do it.

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Speaker 2: But sorry, what was the question again? Early in the morning.

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Speaker 1: Let's say I want to ask you about the o

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Speaker 1: c R yesterday. Do you think that that? I mean,

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Speaker 1: what are you going to expecting to see in terms

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Speaker 1: of deals from banks in the next couple of months.

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Speaker 2: Yeah, look, we'll see interest rates drift down about That's

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Speaker 2: what sort of happens. You know, your floating rate moves

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Speaker 2: worth the o c are literally on the day or

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Speaker 2: even beforehand or immediately after. But your fixed rates is

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Speaker 2: where everyone goes to New Zealand, you know, almost everyone's

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Speaker 2: on a fixed rate and they're much lower than flooding rates.

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Speaker 2: So there is a being surprise to market a worth

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Speaker 2: about at least another quarter percent of four coast drops

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Speaker 2: in the OCR than what was there before. So wholesale

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Speaker 2: rates fell by about that. Therefore retail rates will fall

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Speaker 2: fall by about that. So I think we'll get to

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Speaker 2: about four and a half percent, likely on the one year,

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Speaker 2: maybe even the two year, over the next over the months,

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Speaker 2: he head, assuming things played as they are, it's you know,

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Speaker 2: this challenge that the New Zealand economy is the sort

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Speaker 2: of pulse of activity and it's sort of coming from

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Speaker 2: the Eggrey sector just needs to sort of get us

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Speaker 2: out of this gloomy mood. Eh.

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Speaker 1: Oh, something's got it, David. He appreciate your time this morning.

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Speaker 1: Thanks for being on the show. David Cunninghan as Chief

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Speaker 1: Squirrel at Squirrel Mortgages.

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