Housing market strengthening: Westpac
Wednesday 5 December 2012
New Zealand’s housing market is still in a strengthening phase, according to a Westpac senior economist.
Michael Gordon said today’s statistics from Barfoot and Thompson showed that supply in Auckland in particular had tightened further. New listings have failed to match the upturn in sales over the past six months.
“As a result, the total number of listings is now equivalent to just 3.5 months' worth of sales, down from 3.7 months in October. This is the lowest ratio since December 2003.”
Barfoot and Thompson’s statistics showed a 6.3% seasonally-adjusted fall in sales in November, after a 15% jump in October.
He said low mortgage rates were clearly boosting the market.
“With the RBNZ now obliged to monitor asset prices under its new Policy Targets Agreement, we suspect the RBNZ will have little enthusiasm for OCR cuts.”
Comments from our readers
No comments yet
Sign In / Register to add your comment
Lack of new listings is compounding the downturn in Auckland’s market, real estate industry head says.
Auckland’s residential property market might be slowing, but that’s not the case for its commercial property market.
The Reserve Bank has cut the OCR to 3.25% today. Here is what the governor Graeme Wheeler said.