I saw a newspaper headline recently along the lines that house prices have now bottomed out because some banks have cut their two year fixed mortgage interest rates. But interest rates aren't the only factor causing house prices to go down.
Independent Economist Tony Alexander gives us a breakdown of what is happening in financial markets and the housing market.
So, the tables have turned and we've finally entered a buyer's market - but how do you navigate the apparent minefield of increasing mortgage rates and falling house prices?
Between all the news of increasing interest rates and falling house prices, it's an intimidating market to be in right now. But what aren't the headlines telling us?
When will house prices stop falling? No-one knows. But it looks like we are quite a long way off the bottom being reached for a number of reasons.
How do I know when a downturn in the market is serious, entrenched, and likely to last for some time? There are a number of measures I look at including data on prices and results from my surveys, but one special factor is the blame game.
Recently, I wrote a lengthy article listing the main things I am saying about the NZ residential property market at the moment – some of which I have been warning about for 12-18 months. Here are most of those points in summarised form.
Independent Economist Tony Alexander gives his take on the factors that are playing into falling house prices. Will things be easier for first home buyers with the housing market softening and easing CCCFA rules?
With so many different forces playing out in the market right now - interest rates, inflation, the border reopening - how far might they go?
The expectation held by most of us is that average prices will fall about 10%. That sounds reasonable. But before anyone gets fixated on that number it pays to note something very important.
In my last column a fortnight ago I noted that a buyer’s market is now locked into place around most parts of New Zealand. This week we received confirmation of the same thing from the REINZ’s monthly data release.
Economist Tony Alexander says throughout 2022 and 2023, buyers are likely to keep holding the upper hand in negotiations. All one has to do however is either secure a mortgage (not so easy at the moment) or have cash and therefore no need for one in order to take advantage of this market.