Property

House prices face downwards pressure

House prices are facing downwards pressure as the property market "rolls to a halt" according to ANZ's 10 property gauges.

Tuesday, March 23rd 2010

The bank's economists say their indicators are pointing to more downside risk to property prices in spite of excess demand and central bank mortgage approval data implies things are not about to change.

ANZ picks prices to fall, with five of its 10 gauges negative, one neutral with a negative bias, one neutral, two neutral with a positive bias and one positive.

Serviceability/indebtedness, liquidity, globalisation, mortgagee sales and median rent were all negative, though they hinted that the worst was probably over.

Interest rates were neutral with a negative bias with three to five-year rates "above their decade averages".

Affordability was neutral, though this had been dented by rising interest rates.

Supply-demand balance and consents and house sales were neutral with a positive bias, with buyers "holding back as concerns over job prospects and pending changes to the taxation of residential investment".

Migration continued to be a positive for house prices, though the bank's economists said "a rise in departures to Australia remains a key risk" after New Zealand's largest trading partner avoided falling into recession and returns to normality.

The bank's economists conclude the property market is "becalmed" and with prices likely to keep falling after last year's gains.

 

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.