What’s driving the market?
Monday 12 February 2018
Who can predict where the property market is going in 2018? You can – if you know which economic indicators to watch to understand where the market is headed.
If you pay too much attention to the newspaper headlines exclaiming “the market will crash within three months!” and then, simultaneously, “values will increase 10% this year!” it will tie your head in knots.
Ignore the inflammatory headlines – all you really need to know and understand is the balancing act of supply and demand.
Essentially, you’re trying to make sense of why demand will increase or decrease.
But what drives supply and demand? In this month’s issue of NZ Property Investor magazine we set out to explain.
We asked the experts which key economic indicators are worth paying attention to this year and we found out what the current data is saying about the 2018 property market.
Armed with this information, you can make your own predictions as to where the market is headed.
Here are the major market drivers as identified by the experts we spoke to:
• Population growth (including migration) versus supply
• Interest rates
• Credit control
• Looming legislation and its impact
• Labour market strength
• Sales volumes
• FOMO and catch up
To read more about these drivers and what they are indicating about 2018, click here to get the digital issue of NZ Property Investor magazine.
Subscribe to NZ Property Investor magazine here to get great stories like this delivered to your mailbox every month.
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