With so many different forces playing out in the market right now - interest rates, inflation, the border reopening - how far might they go?
We come bearing good news, investors! As of the 21st March 2022, the rate of return across two of our Investment Classes – Home Loans and Construction Loans – has increased by 0.25%.
As Kiwi businesses and consumers are left to grapple with a nasty cocktail of inflation and higher interest rates, there will be a raft of implications for our economy.
As Kiwis grapple with the double whammy of higher interest rates and high inflation, there’s no doubt people are starting to feel the pinch. Could current economic pressures lead to a drop in house prices?
In last year’s mortgage rate forecast, we predicted rates would drop below 2.00% and stay low, which they did for most of 2021. Our house price prediction wasn't so on the money, but that one comes down to a matter of timing. Here's our latest analysis.
My own experience of two first home buyers 13 years apart shows that servicing hasn’t changed all that much. It's as hard today as it was 13 years ago. But what it doesn’t show is the sizeable part of our population that are locked out of the housing market altogether.
I recently wrote about the end-game being underway for the three decade period of high average house price rises. I still remain of that view, but for now the market retains considerable strength.
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.
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%.