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Nearly NZ$1 bln more loaned on houses in past month, most for nearly five years; amount loaned up 4% in the past year, the biggest rise for four years
The increasing heat in the housing market is being demonstrated in the latest home lending figures.
According to Reserve Bank sector credit figures for January, released today, the amount loaned on residential property climbed by some NZ$952 million in the month, to a new total of NZ$178.66 billion.
The monthly rise was in dollar terms the most for nearly five years, dating back to the last housing boom. While the year-on-year increase of 4% was the highest in exactly four years.
During the month agricultural lending rose slightly to NZ$49.81 billion, but showed a strong 4.8% rise for the year.
Business lending also increased slightly, to NZ$79.05 billion, but the annual rate of increase, at 2.2%, was the smallest for 11 months.
7 Comments
Happy days are here
Happy days are here again......... we are all rich , hope its ends well
Probably up $1.5 billion in
Probably up $1.5 billion in February.
Cripes, if nominal GDP growth
Cripes, if nominal GDP growth doesn't follow we could be borrowing to pay ourselves and our debts - a ponzi scheme?
The Credit Ponzi Scheme is
The Credit Ponzi Scheme is alive and kicking, Annual nominal GDP is up no more than 4%, say $8 billion, easily outstripped by credit growth of over $20 billion.
Central Govt. $10billion
Households $7billion
Agriculture $2.3billion
Business $1.6billion
Local Government ?
So debt is growing at almost three times nominal GDP, what happened to the deleveraging that was supposed to be the reason for the soft economy? Another year of this and things will get very ugly; ugly international position = rising interest rates = current account deficit blow out = dollar colapse = higher unemployment and so on. John Key will be saying "well no one could have forseen this", wonder if he's had a read of the S&P report.
The Christchurch rebuild and
The Christchurch rebuild and paying out compensation is already recorded that it will require borrowing of in excess of $20billion for the complete rebuild. This is borrowing on top of EQC that is required for the rebuild. So you need to deduct the Christchurch rebuild.
To slow down lending the
To slow down lending the Reserve Bank and Wheeler that needs to act together with Peter Dunne to tax interest earned on foreign deposits. We must attack the supply side to money. The government makes money from the tax and it dampens the supply of hot money which means less money to lend out to households without damaging the entire New Zealand economy and setting us back another 10 years. Increasing interest rates and attacking the demand side of money is plain stupid. It means that our government gets less tax because business profits gets hit.
It is high interest rates in the last 30 years relative to the rest of the world caused by Don Brash and Allan Bollard, Reserve Bank policies that have set New Zealand back at least 10 years. Do not blame New Zealanders. It is due to extremely poor economic leadership.
While bad tax policy has
While bad tax policy has certianly paid its bad, NZers have acted irresponcibly, and quite a few % will be paying for that over the next decade IMHO.
regards