See their statement titled "Housing market remains in decline over past month" below:
The property market remained in decline during the month of October, according to the latest Mike Pero Mortgages-Infometrics Property Cycle Indicator (PCI). “The nationwide PCI has remained at its lowest possible figure of minus-10 for the second consecutive month and the second month in two years,” says Mike Pero Mortgages Chief Executive Shaun Riley.
“This latest figure suggests house prices will come under increased downward pressure in the next few months.
“House sales volumes in October were down 36% from a year earlier, the largest annual decline since the height of the financial crisis in late 2008. A sharp drop in sales activity in Auckland was the main contributor to this decline. “
Mr Riley says the median house price stayed the same this past month.
“ The median house price held at $350,000 for the third consecutive month in October,” he says. “Relative to October 2009, the median house price was down 1.4%, the first annual decline since May 2009.”
The Mike Pero Mortgages-Infometrics Property Cycle Indicator fell to a negative 10.0 in September and has remained there since. The PCI is a sensitive measure of the housing market and includes three main factors – changes in the number of houses sold, changes in price and the time taken for houses to sell.
The latter factor – time taken for houses to sell - reveals property took an average of 41 days to sell in October.
When adjusted for typical seasonal variation, this was the slowest rate of housing turnover since March 2009. Rental inflation slowed marginally to 3.5%pa in October. Both floating and fixed mortgage rates were unchanged in October as the market continued to expect the Reserve Bank to leave the official cash rate unchanged until at least March 2011.
6 Comments
Poor Ireland, are we next ?
Ilargi: Let's start off with what Tom McGurk wrote in Ireland's Sunday Business Post:
Time to reclaim the land that is rightfully ours
Last Thursday, a group of ten leading economists wrote to the Irish Times, arguing that some form of mortgage debt forgiveness was not only essential for our society, but also for the economy.
The group argued that, were mortgage debt forgiveness not introduced - and radical reform not introduced to our debt and bankruptcy laws - then our financial crisis would only deepen. At the core of their argument was the following assertion: ‘‘As there are three parties to the problem - the banks, the regulator (ie the state) and the individual - these three must also be part of the solution."
With the government having insisted on a year’s grace for home repossessions by the banks, we are currently in some sort of unreal financial hiatus. It means that the full dimensions of the crisis to come are still hidden.
But late next year, when property and water taxes have been introduced - and when interest rates begin to rise, as they surely must - then the personal debt crisis has the potential to become the most serious crisis in the history of the state.
If the banks attempt a process of mass repossession next year, then they must be met by organized citizens’ action. Boycotting was invented in 19th century Ireland, and the time to use it again may be now.
"...some form of mortgage debt forgiveness was not only essential for our society, but also for the economy."
And I blew every cent I had on some Nigerian email scam. Where do I sign to get my taxpayer bailout money? Or does this suggested bludge not apply to ALL greedy suckers?
A perfect 10.....so what will it be when the rates begin to rise on the back of the piigs fiasco and the scams at the Fed....oh sorry we're different and the cost of credit here is determined by the spin.
Here it comes:...." This latest figure suggests house prices will come under increased downward pressure in the next few months."
Yessir it sure is time to borrow big and splurge on property...just ask any bank boss!
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.