Housing prices take big slide
Wednesday 13 October 2004
Auckland average house prices are falling by almost $500 a day, with top-end market prices easing fastest of all.
By The LandlordJust two years ago prices were rising about the same amount.
Residents made richer on paper by the superheated market in the past three years are now watching their capital gains evaporate.
Prices fell for the fourth month in a row, and the luxury end of the market is slipping most quickly.
Homeowners with mortgages may face more difficult months, with the prospect of two interest rate rises this year.
The Institute of Economic Research's business survey found strong growth in September, which could prompt the Reserve Bank to increase its rates this month and in December.
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Periods of house price decline are rare and "short-lived", says economist Tony Alexander, amid forecasts of a drop of 10%-15% this year.
The Reserve Bank says the commercial property sector is vulnerable to the Covid-19 crisis. But PMG Funds' chief executive believes that while there’ll be short-term pain, the biggest long-term impact will be structural change.
Mortgage lending fell to its lowest level on record last month as the property market ground to a halt during the Covid-19 lockdown.