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.
Newsroom’s Alexia Russell sat down with Chief Squirrel JB to chat about what the Government's recent announcement means for first home buyers. Does it remove the stumbling blocks, or is it still hard as ever for young Kiwis to get onto the property ladder? Are there going to be any unintentional consequences?
I was asked to give a radio interview last week on the topic of the Green Party’s policies which they believe will make a sustained difference in house prices. The timing was perfect as I was just about to put pen to paper for my latest column for Squirrel – so here are my thoughts.
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.
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.
It is now hard to believe that there could be more than a handful of people left in the country thinking the Covid-19 crisis will cause house prices to fall in New Zealand. So what's causing the demand? One thing mainly: the biggest net migration boom New Zealand has ever seen.
One of the strongest expectations most of us have had regarding the impact of fighting Covid-19 from early this year, has been that construction of houses will fall away. This expectation was soundly based but the chances of that are getting slimmer by the day.
As I've eluded to over the past few months, I've expected house prices to stay reasonably stable, especially entry-level properties. However, there will be pockets of the market that are hit harder, and one of the segments is apartments.
I think now is a good time to be at least looking, but take your time and make sure the numbers stack up. If you buy cash flow neutral in the right areas, irrespective of what happens with short-term house prices it will be an excellent long-term investment.
We now have data in hand showing that after an obvious collapse in real estate activity from late-March through to early-May, sales have since rebounded.
I recently talked about the factors providing support for the New Zealand housing market which included interest rates, a shortage of listings, and a long queue of frustrated buyers. One other factor that's just now getting more attention is the high number of Kiwis returning home.
After a short hiatus and a 5%-10% fall in house prices, I’m going out on a limb given the current market pessimism and predicting we will stretch into what might be the last great housing boom. Here's why.