Comments on: Spring ‘bounce’ in property listings subdued, realestate.co.nz says

By: The Bank Manager

The Bank Manager — Tue, 03 Nov 2009 09:36:38 +0000

From a Robert Schiller item

He also predicted rising unemployment would not stop prices increasing. “Even in the Great Depression real home prices were rising with the unemployment rate above 12 percent … Just because we have high unemployment does not mean the stock market cannot boom and the housing market cannot boom.”

http://www.globaledge.co.uk/news/us-shiller-warns-prices-could-be-in-bu-36169

By: Allen

Allen — Mon, 02 Nov 2009 08:15:28 +0000

I belive we had highest interst rates in the world between 2002-2007, and house prices more then doubled during same period.

By: 28_year_old

28_year_old — Mon, 02 Nov 2009 01:29:25 +0000

Most people over the past 3-4 months on interest.co.nz have or are predicting interest rates to spike up past 10% pretty fast over the coming fuel. I’m no economist but as interest rates push up won’t inflation increase and isn’t house prices increase historically linked to periods of high inflation? Any websites or charts etc tracking historical inflation rates with interest rates and house prices please?

By: Rob

Rob — Mon, 02 Nov 2009 00:53:02 +0000

Interest rates, when they go up next year, will rocket up. You will see perhaps 100 basis point jumps. So if people are struggling now to secure a mortgage for n overpriced, poorly designed and built NZ house with little or no inuslation (which many of them are), then the buyers will disappear when interest rates are up to 10%. People who buy now, and are thinking of selling in a few years time, will end up losing a of moeny.

By: Trudy

Trudy — Mon, 02 Nov 2009 00:43:47 +0000

gingerbreadman,

Strange that you saw auction rooms choked with bidders. Can you tell who are those bidders or just watchers? Are those bidders locals or foreigners?

Last few weeks, saw some open homes looked very quiet though. Maybe, Bernard’s prediction is becoming true. Potential buyers might come to understand some fundamentals, who knows, time will tell.

Sales up, prices up, net migration, low interest are just music to my ears. Cheers.