Property

Housing market remains weak

The housing market remains weak, with sales and average selling prices falling further in September according to the latest ANZ Property Focus, which described a housing market “lost at sea and struggling to keep its head above water.”

Monday, November 01st 2010

The ANZ Property Gauges use 10 indicators to assess the state of the property market and look  for signs that will impact on house prices.

The bank said that the Canterbury earthquake dented a market already struggling in a deleveraging environment with a slowdown in net inward migration.

Of the ten gauges only two showed a moderately positive direction for rising house prices - the supply/demand balance and consents and house sales.

The supply/demand balance gap was still wide but was closing and at its narrowest point for 18 months while the lack of action in consents and house sales was "drifting down."

Of the remaining eight gauges, five remain in neutral territory, one suggests either neutral or downward movement and two point to lower house prices.

Serviceability/indebtedness suggests downward price movement as interest servicing eases to a five-year low.

Liquidity also pointed to downward momentum as measured as a ratio to GDP, credit has all but stalled.

Affordability pointed to neutral or downward movement, with the bank saying affordability is at its best level for 12 months. 

Interest rates, migration, globalisation, mortgagee sales and median rent were all in neutral territory.

The bank said net migration is down to its lowest annual total for a year while the globalisation gauge showed house price growth has slowed in Australia, though at 18.4% it still remains four times New Zealand's rate of growth.

Mortgagee sales lifted in July and remain elevated while median rent saw the strongest rate of increase since December 2008.

The bank said the slowdown in net migration, added to factors such as falling sales and average selling prices, the earthquake and the slowing in the economy, suggest there is not a lot of optimism in the housing market at present, though it expects to see a pick up in 2011 as the economy gains momentum.

Heartland Bank - Online 1.85
ICBC 2.15
SBS Bank Special 2.19
HSBC Premier 2.19
HSBC Special 2.25
Kainga Ora - First Home Buyer Special 2.25
The Co-operative Bank - First Home Special 2.29
Kiwibank Special 2.49
The Co-operative Bank - Owner Occ 2.49
ANZ Special 2.50
TSB Special 2.50
Heartland Bank - Online 2.35
ICBC 2.35
HSBC Premier 2.45
Kiwibank Special 2.49
SBS Bank Special 2.49
China Construction Bank Special 2.65
Resimac 2.79
TSB Special 2.89
The Co-operative Bank - Owner Occ 2.89
Westpac Special 2.89
ANZ Special 2.90
China Construction Bank Special 2.99
HSBC Premier 3.19
ICBC 3.19
Kainga Ora 3.37
Bluestone 3.54
Select Home Loans 3.54
Resimac 3.54
SBS Bank Special 3.59
The Co-operative Bank - Owner Occ 3.79
TSB Special 3.79
Westpac Special 3.79
ANZ Blueprint to Build 1.68
ASB Back My Build 1.79
Heartland Bank - Online 1.95
Resimac 3.39
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
Kiwibank Special 3.75
Kiwibank 3.75
Kiwibank - Offset 3.75
The Co-operative Bank - Owner Occ 4.40

More Stories

LVRs kicking in for Auckland house prices

Friday, July 16th 2021

LVRs kicking in for Auckland house prices

The loan-to-value (LVR) restrictions reintroduced by the Reserve Bank are having a far greater effect on Auckland house prices than anywhere else in New Zealand.

Dire shortage of properties for sale

Wednesday, July 14th 2021

Dire shortage of properties for sale

The total number of properties for sale across the country dropped by 33.3% last month. The second lowest level of inventory ever, REINZ data shows.

ASB hikes rates across the board

Wednesday, July 14th 2021

ASB hikes rates across the board

ASB has become the first major bank to hike interest rates across the board as New Zealand's economic outlook improves.

Investors urged to bolt in long-term rates

Tuesday, July 13th 2021

Investors urged to bolt in long-term rates

With high inflation just around the corner, ANZ Bank, the country’s biggest mortgage lender, says mortgaged property investors would be wise to fix at least some of their borrowings at longer-term rates.