Will the New Zealand housing market crash?
New Zealand’s house prices are on track to drop by up to 20% in the next year – the biggest drop since the 1970s – two of the biggest banks have predicted, which would take prices back to where they were just over a year ago. For years, the country has been plagued by a runaway housing market.
Is property market slowing down NZ?
Sales activity in New Zealand’s previously overheated property market began to show hints of a slowdown in mid-2021, which then became “genuinely weak” as the trend extended into the first quarter of this year.
What is happening to the property market NZ?
ANZ economists are now projecting a 10% drop in prices over the year. While that would be easily the biggest drop in prices in the last decade, it is still far from returning New Zealand house prices to what they were even a couple of years ago – median house prices rose 31% in the year to July 2021.
How far will house prices fall NZ?
The 9% decline predicted for this year in the latest Reuters poll of 11 property market analysts taken May 11-26 is much larger than the 0.8% fall predicted in a February poll. House prices are forecast to decline a further 2.0% in 2023. “The cost of housing in New Zealand is a national embarrassment.
Will House Prices Drop 2021?
Housing market predictions House prices could drop later in 2022, but they have defied expectations and continued to rise over 2021 and into 2022.
Why are NZ house prices so high?
The main reason prices have risen is because over the last 30 years interest rates have fallen. “Factors in favour of house prices rising have simply been way too powerful for any sort of reasonable political policy to have had much of an impact, quite frankly.”
Is NZ housing in a bubble?
The property bubble in New Zealand is a major national economic and social issue. Since the early 1990s, house prices in New Zealand have risen considerably faster than incomes, putting increasing pressure on public housing providers as fewer households have access to housing on the private market.
Why are house prices so high in nz 2021?