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.
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There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.