House market slowing, says BNZ chief economist
Monday 22 November 2004
Rising house price figures are less rosy than they first appear, say economists.
By The LandlordBNZ chief economist Tony Alexander said the Real Estate Institute's data for last month showed the number of dwellings sold was actually 3 per cent down on the September figures on a seasonally adjusted basis.
Although the institute claimed a spring recovery because the national median price rose, Mr Alexander poured cold water on this.
"The rate of decline in sales has been reasonably steady in recent months," he said. "The data suggests a housing market slowing down but at a gradual pace."
Institute president Howard Morley said interest rate reductions had helped to push the median up from $250,000 in September to $252,500 last month. Morley was upbeat about the figures from last month.
Read More - Opens in a new window
Commenting is closed
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.