House Prices in NZ – Where are They Going?
So what direction are New Zealand house prices going? Over the last couple of months Quotable Value has reported a gradual trend of declining house prices all across New Zealand – is this the trend we are going to see for a while?
Reading around, down, seems to be the general agreement for the direction of house price in New Zealand, by why? And how far down are they going to go? And how long will this go on for? I am leaving this one up to the experts to answer!
I particularly like this article by Bernard Hickey from interest.co.nz. His thoughts are that NZ house prices have another 10% to fall and he gives 10 reasons why:
1. The cheap foreign credit has dried up.
2. Home loans remain unaffordable for most in the bigger cities.
3. New Zealanders are migrating to Australia again.
4. The property tax changes are hurting more than expected.
5. The developed world is de-leveraging from property bubbles.
6. NZ households have hit debt saturation point.
7. Our debt is relatively high compared to many others.
8. Rents are not increasing in most places.
9. Banks face even more funding pressure.
10. The baby boomers will start selling down their houses and rental properties to free up cash.
The article not only has food for thought but also references some great resources. So check it out now Opinion: 10 reasons why New Zealand house prices have another 10% to fall – by Bernard Hickey.
But don’t let all this doom and gloom put you off buying a house! Check out our house buying guide, it has all the tips, advice and information you need to make a great house buying decision!
Tags: House Buying, House Prices, Market Value