Property

House prices likely to stay flat

While house prices increased in June from a month earlier, the general trend over the past three months has been flat at best, according to ANZ.

Tuesday, July 27th 2010

The ANZ Property Gauges, which uses 10 indicators to measure the state of the property market and for signs of change that will impact on house prices, show house prices remain uninspired despite increasing last month from $350,000 to $352,500 and look set to stay at a similar level for some time.

"It's hard to see this picture changing any time soon, with weekly mortgage approvals for the first week in July looking even softer than in June," ANZ said in its Property Focus report.

Of the 10 indicators, only two showed to have any upward influence on prices.

Supply and demand still remains out-of-balance and ANZ warns that although "the jaws remain wide open", this could rapidly change without warning.

Consents and house sales also look to be running out of puff, with headwinds predicted. Total sales fell to their second worst June in a decade last month, with 4,575 sold, compared to 5,206 in May and 6,040 in June last year.

Affordability looks set to improve, on the back of lower interest rates, while borrowers continue to pay down debt and serviceability and indebtedness eases.

Liquidity, which looks at available funds in supporting the property market, remains ‘illiquid'.

ANZ points out renters can breathe easy for now, as rents are also remaining flat.

Mortgagee sales have rebounded somewhat recently, and easing migration and lagging globalisation will see a lid kept on house prices for now.

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

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