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11 August 2021

Multiple factors contributing to a slower housing market

There are a growing number of factors in play which suggest that while demand for housing will remain firm, we've entered the end game for the period of strong house price rises well exceeding the rate of growth in household incomes.

23 July 2021

Higher interest rates will slow but not crush NZ economic growth

Two week’s ago expectations for interest rate changes in New Zealand took a leap up in response to the June quarter inflation number coming in 0.5% higher than anticipated. This is a very rare event and the signal it has sent is that the pace of growth in our economy is too strong for the Reserve Bank to be confident of containing inflation below 3%.

15 July 2021

Mortgage rates on the rise

The world has been printing money for several years, in anticipation of inflation and interest rates eventually rising. Neither of those happened. But the short-term has changed.

27 May 2021

Housing market still supported by low interest rates this year

Two weeks ago, I wrote on the theme that young buyers will probably hold back from the residential real estate market until they see older investors returning – then they too will return. Evidence for this has already been shown from my surveys.

14 April 2021

Covid impact on people reliant on interest income

Interest rates offered by banks are low as a result of the pandemic. The Government has helped out lots of parts of society, and we’re all grateful for this. Have they helped those reliant on interest income?

30 March 2021

Government policy, interest rates and house prices

This post will start with a little rant and then progress into trying to understand the downstream impacts of a big week for the housing market. Just in case you were under a rock this week, the government announced a major change in housing tax policy.

30 March 2021

House price stability and interest rates

In this article I’m focusing on the idea of debt-to-income ratios. It is likely that they will be a key tool used by the Reserve Bank to meet its new house price stability objective.

19 February 2021

40% deposits and a slight slowing in rising house prices

The last time 40% deposits for investors were introduced, Auckland house prices had been soaring for four years. This time, we're only a year into the current frenzied house price cycle, and interest rates are much lower than they were. So how much impact will reintroducing the rule have?

17 February 2021

What’s happening to Mortgage Rates?

It’s just a little bit odd at the moment trying to make sense of mortgage rates. The mortgage rate signals that borrowers are receiving are somewhat confusing.

27 October 2020

Housing and interest rate forecast for 2021

It’s around this time of the year that I take an educated guess at what will happen with house prices and mortgage rates. As I’ve said time and time again, the strongest correlation that exists is between house prices and interest rates.

26 October 2020

Honeymoon offers and 1.99%; why it's important to look beyond the headline

If you’re familiar with us, you’ll know that at Squirrel we don’t like to pull punches so here goes. Heartland Bank came out with a staggering mortgage rate of 1.99% fixed for 1-year. Naturally everyone got excited, but what is it actually? Since then, no other banks have followed.

26 October 2020

Will LVR restrictions return?

I started writing this property-focussed column for Squirrel Mortgages back in June this year. If you’ve been reading it from then you'll still be surprised like I am that housing markets around the country are so strong, but not as surprised as those who haven't had the chance to read it.