If all the latest headlines are to be believed, we're in for a big comeback in house prices over the next 12 months or so. But when it comes to the question of "to buy or not to buy?", Squirrel guest blogger Rodney Dickens reckons the numbers don't quite stack up in favour of a house price surge just yet.
For many Kiwi voters, National's win in the recent election probably didn’t come as too much of a surprise — and you can bet that National’s focus, especially over the next 12 months, will be on driving through policies that are designed to bolster the New Zealand economy. So what will this all mean for homeowners and borrowers?
The recent migration boom and rising construction costs have contributed to the growth in house prices — but what are the other factors causing them to rise, and how long will prices continue to increase?
Price changes have now entered the upward leg of the house price cycle, and the demand coming from first home buyers which has created this situation is now being boosted by investors returning to the market. But will the end of the upcoming election bring huge changes to the housing market?
New Zealand has narrowly escaped the technical recession that was called a few months back — but Kiwi households are still feeling the pressure from high interest rates. So with an Official Cash Rate (OCR) announcement on the cards for 4th October, what’s likely to happen with mortgage rates from here?
Seasonally adjusted data shows that house sales have risen again by around 8% in the past three months, and this has been led by Auckland, along with Wellington and Christchurch. But sales isn't the only thing that's grown — the recent immigration boom has added extra pressure to Auckland's housing stock. Will falling new-house construction in a time of strong population growth result in property shortages in 2024?
Young buyers are back in the market after being encouraged by lower house prices, greater listings numbers, higher deposits after 2-3 years of holding back from buying, a view that interest rates have about peaked, and a strong labour market bringing rising wages and high job security. So have investors joined them, and is FOMO back?
Sticking to the path it laid out for us in July, the RBNZ has opted to hold the OCR steady at 5.50% - and they're saying it might be 2025 before rates start to come down again. But global uncertainties, deflationary forces in China and the upcoming election has everyone holding their breath.
Word on the street is that house prices have finally hit "sustainable" levels, after 18 months of significant falls. But are they really "about right"? Chief Squirrel, David Cunningham, digs into the data to tell us whether house prices really are where they need to be.
And there it is, finally - after 12 back-to-back increases - the break in interest rate hikes we’d all been waiting for. The question now is, when will rates start to fall again?
There is an increasing number of signs pointing to a turnaround in the housing market, and quite possibly even gains in house prices and sales. However, the question remains: What factors are driving this shift to happen sooner than anticipated?
Between a weakened construction sector, increasing migration and more businesses starting to retrench (both of which are helping to ease pressure in the job market), there are lots of signs out there to indicate that inflation’s coming under control. So, will there be another OCR increase?