Auckland's largest real estate agency had another strong month in June, with sales volumes edging up and prices setting new records.
Barfoot & Thompson sold 1243 homes in June, up from 1197 in May and 1107 in April.
Prices were also higher with the median selling price hitting a new record of $1,109,000, and the average selling price also hitting a new record of $1,143,328.
That means the median selling price increased 3.4% from May, while the average selling price was up 2.6% for the month.
"Normally in June sales numbers start to edge lower, but this year we sold 1234 homes, up 3.8% on those for the previous month, and both the average and median prices were higher than those for May," Barfoot & Thompson managing director Peter Thompson said.
New listings were at a reasonable level, with 1485 received in June.
That was down by 1.1% from 1582 new listings in June last year, although that month was marked by a rush of new listings as we emerged from pandemic-related restrictions.
But June's new listings were well up on the 1012 received in June 2019 and the 1210 received in June 2018.
However the total volume of homes Barfoot & Thompson had available for sale at the end of June was the lowest for any month since January 2016.
At the end of June last year Barfoots had a total of 4001 homes available for sale.
"Demand and competition for homes has never been higher and the number of homes we had for sale at the end of the month was down by a quarter on the number available at the same time last year," Thompson said.
The interactive charts below show Barfoot & Thompson's monthly sales and price trends since 2002.
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99 Comments
Either they need to implement DTI or raise LVR to 60% for investors. Even better cash only 40% LVR for investors where they cannot use existing equity will quell this frenzy down. Why is it an issue to make deposit, cash only for investors when we are ranking number 1 in the world for housing unaffordablity? Why are we letting this madness continue?
We have allowed the housing lobby to become as powerful as it can get and created a dependency not just on the economy but also public institutions that will be hard to get rid of.
It should be up to elected officials to do this, unfortunately this does not seem to be their primary interests since many of them actually benefit from the current status quo.
That’s called corruption then. If they cannot govern without thinking about their vested interests.
I wouldn't call it corruption, but each to their own. Certainly I can imagine the vested interests could be subtly influencing the actions (or inactions) of politicians perhaps without them even knowing it. It's hard enough to bring about meaningful change at the best of times. It's harder when such change is going to make the majority of the decision makers financially worse off. I don't see this as an insurmountable problem but it's definitely a challenge.
b21
" this does not seem to be their primary interests since many of them actually benefit from the current status quo"
A very wild accusation.
Note: Given the bias amongst the majority of posters on this site I'm not expecting upticks but that comment is spurious.
Why is it a 'very wild accusation'?
The government have not shown sufficient urgency in their 4 years in power to convince many, including myself, that they are deeply concerned with the housing debacle.
Congratulations on your daily messed up interpretation of whatever I write. And no, it is not an accusation, but an observation anybody can do with eyes wide open.
b21
Then what evidence do you have that they act in their own interest? That is simply an accusation.
Do you really think the RBNZ Committee sit around and say what do we need to do / not do to protect our personal interests? Naïve if you do, but that is what you are saying and so yes such conspiracy theory statements will be challenged.
Come on printer, this stuff is obvious: https://www.newshub.co.nz/home/politics/2021/05/2021-edition-the-full-l…
I would have thought you know about this. Especially interesting the interests of some National MPs. RBNZ officials are not elected FYI.
https://www.newshub.co.nz/home/politics/2020/08/the-number-of-propertie…
I don't think b21 is referring to RBNZ Commitee, "elected officials" doesn't equal to "RBNZ Committee". I don't see it's an accusation. Also elected official are supposed to be challenged, that's how democratic countries work. No need to try so hard to find holes in people's opinions when you simply just don't agree with someone. If you don't agree with someone, you can simply put your opinions here.
I agree, without a published list of Adrian Orr's financial interests it's hard to say whether there's a conflict of interest and an implicit bias with regards to interest rate setting.
Conflicts of interest aside, given the performance of property over the past decade you'd think people in such positions requiring financial "nous" would have a bit of their wealth in the residential property investment vehicle.
Too many naive folks prefer to think that no one ever conspires. It always has to be theory.
I generally give politicians the benefit of the doubt and assume they mostly act for what they think is the greater good. However, you're taking this to a whole new level to think that their own financial interests would have no impact on the actions they take - seriously rose-tinted glasses. A significant drop in house prices would be good for the country in the medium term, but many politicians will have one eye on their portfolios before voting for policies which might achieve that.
Bear in mind the definition of politics. From "poly"meaning many, & "tics" meaning a blood sucking parasite. From this we get our politicians!
The Inspector general of comment on duty again
Why is it an issue to make deposit, cash only for investors when we are ranking number 1 in the world for housing unaffordablity?
Because it's practically impossible to define what "cash only" actually means. Whatever your definition, people can jump through hoops to get around it and you can't reasonably stop them.
If the investor has a revolving line of credit on one of their properties, they don't have to use equity in the property to buy the 2nd one, they can simply take the cash out of that loan and present it as a cash deposit to another bank. They could move the property into a company and sell shares in the company and use that as a cash deposit. There are all sorts of arrangements like this, by saying "cash only" all you've done is made people jump through expensive hoops to achieve the same outcome.
Look Grant our policies are working!!
Absolutely these policies are working!
Whoa slow down there buddy! Let's not jump into conclusions just yet! It's only been a year since the lockdowns and just a few months since the new regulations. LVR settings are very delicate, we shouldn't make a rushed decision (that can only be done when we think prices would fall). Maybe the next 6 months will paint a different picture. Or the next 2 years. Or 10 years. Patience my padawan. Watch and wait.
Dairy sector holds the country's economy at ransom.
Property investment sector is emerging as the new sector that also holds the country's economy at ransom.
When there is a draught, dairy farmers are saved by the government.
However, when there is a draught in money or higher interest rates, who would save property investors?
Drought ...Xing,.not draught, unless this is a cold dirty wind bringing increasing inequality,to the poor and renters.
Drought...prolonged dryness.
I agree with Xingmo.
We should all demand better insulated dairy farms!
Yes - I find most of them cold and draughty when I say hello.
“Because when we hold ourselves to account, you can hold us to account“ - 20 Aug 2017
“How can you claim you've been successful when you have growth of roughly 3% but the worst homelessness in the developed world?“ - 20 Oct 2017
“I am skeptical of the link between interest rates and house prices“ - Sep 2019
“We must also not allow inequality to take hold in our recovery. In fact, we need to take this opportunity to improve the prospects of all New Zealanders and tackle those long-standing divisions.” - 15 Apr 2020
“It just cannot keep increasing at the rate that it is.” - 12 Nov 2020
“It is much more sustainable to have those much smaller increases. I think people expect that you see that in the market“ - 7 Dec 2020
“It’s pretty clear that over time interest rates will go up, and therefore people have to bear that in mind. *Hopefully*, the value of the assets is maintained but people always have to consider that.” - 18 Jun 2021
The fish rots from the head. Quotes from a dim and narcissistic leader with no compelling vision for New Zealand and her deputy incompetent.
Aroha-ha-ha. #BeKind.
Does anybody have any arguments as to why any of our ambitious young or skilled people should remain in or contribute to this country any longer?
"Yeah but then you'd have to live in Australia" - word for word response to that from my boss. The topic came up last week after only 4 people applied to a job ad we posted, two of them from overseas. A $100k salary just ain't gonna cut it when house prices go up more than that each year.
I don't. NZ doesn't deserve them and doesn't seem to care anyway so young people should leave if they know what's best for them.
Which part of Australia did you choose Jesse1?
Is there anything you miss much?
I lived in Bondi, Sydney for 7 years and was able to save a whole lot more than here and I used those savings to start my own online business which I now do from Wanaka. If you own a business or have property, NZ can make sense but if you're working for someone else I think it's best to be in Australia. Money isn't everything but if moving to Australia means that you have the opportunity to buy a house one day with disciplined saving, that's a pretty big benefit. I highly recommend it.
I didn't miss NZ for most of the time I was there. I remember laughing at some of the news back home like when the lewis road chocolate milk fad was happening.
I came back in 2018 with some hope that Labour were going to sort out the inequality and house price issues for a better society to live in but both of these have got worse and they backed out of the capital gains tax while the government wants property to keep rising. So I strongly believe young people should give up on NZ and go to Australia.
Yeah. I lived in Europe for well over a decade and did pretty well. Thought it would be better for my kids to grow up here and know their grandparents. Huge mistake.
Returning to NZ after living abroad, kind of felt like Tom Hanks in Castaway. NZ takes a lot of getting used to, even for expats. But I must say, in the twenty years we've been back, it's worked out well for us.
Worked out very well for me. Did London, Sydney and Indo for more than a decade away. Convinced my wife to move here with me. Once you have a family and your own home NZ is a fantastic place but the young and single should be overseas. Regardless of house prices and incomes anyone with ambition would be venturing off anyway NZ is way too parochial, isolated and limited to stay in your whole life.
Just reminded me on what it was like returning to Tawa Wellington from central London a few years back. A couple of street lamps dimly lit the up road as the taxi pulled up outside my shack at about 10pm. I didn't venture out for a couple of days, think I may have been temporarily depressed, and I was only away for a couple of weeks for a work trip lol.
Not forgetting g the classic I don't know eat GDP is.
....b-b-b-b-but I thought Jacinda fixed this?!!
This is a central banking problem.
If only there was a way to take power away from central banks and governments. Oh wait, there is ;)
OCR to 1.25%
Abolish RBnz. Let money find its price.
As usual unintended consequences. The dopey Government punished investors with taxes if they sell, so two things happen. One lot of investors buy and sell and keep 70% profit - not bad for a days work-or the other lot of investors hold on refusing to sell to avoid the tax. Either way prices a driven up either by outright speculation or an artificial shortage in the market. It would be more logical to tax people who don't sell and then watch the flood of properties come onto the market. And of course the other elephant in the room is the freedom from tax for Mums and Dads who can sell over and over again for tax free profits. If our present politicians had gun powder for brains it wouldn't even ruffle their hair.
Unintended yes. Unforeseeable no.
Except the brightline tax extension wasn't retrospective so the only investors affected by it would have had to have bought their house since April this year. I doubt there's that many investors "holding on refusing to sell" houses they bought 2 months ago.
Agree, the main driver seems to be developers paying big $ for land and mum and dad investors and downsizers moving homes with whom it is impossible to compete against for FHB since the latter cannot use existing equity as a deposit but just their own income savings which are being obliterated.
A lot of these prices are very average houses being sold for moonbeams as they are now mixed housing zoned. Lots of mums and dads now sitting on jackpots. At my local auction rooms for BT, there are the same 2-3 guys coming in and bidding on seemingly every house that mixed housing each week. Auctioneer knows they by name, lots of side banter etc.
I suspect that has as much to do with current prices as any interest rate mechanics.
Yes.
And another unintended consequence of government policy will be for another price surge to occur with the widespread rezoning required by the national policy statement urban development.
If you think developer bidding has been frenzied in the last couple of years, just you wait for the next couple of years....
I see median prices 10-20% higher a year from now.
But the HPI perhaps 5-10% higher.
If the investor was moving from property to property in the past, there was less impediment than now. Why would you sell an exempt property to invest in another one with a 10 year brightline? Just keep the original.
It would be more logical to tax people who don't sell and then watch the flood of properties come onto the market.
That is in fact what they're doing, by removing interest deductibility from mortgages, as most investments have mortgages on them, people will begin to be taxed on the rental revenue that would normally have been a tax-deductible expense.
It starts from October 1st and depends on when you bought the property as to how much interest is now taxable.
Nicola Willis says the data she has obtained through written questions for state housing waiting shows the number of people in the top three risk categories has gone from 57 people in December 2017, to 2100 today.
I think we will see 1/2 % increase month on month then a slight increase through summer. Next year will fall flat I suspect, however still 10 to 15 plus % to be made till March 2022
NZ Inc. is playing its part in the greatest wealth transfer the world has ever seen .....gotta keep the working population "enshrined in debt" otherwise they think they are going backwards .....while the banks just keep those cash flows rolling in .....what a crazy country economically if the only way to wealth creation is buying and selling houses to each other ......something is "fundamentally" wrong ??? ........what is it you ask ? .......everyone is just LIVING BEYOND THEIR MEANS !!! and those same "powers that be" are taking full advantage of it ...... if I was a few years younger I would be off to Oz with marketable skills ......and leave all the greedy banks and residential property investors to it......and when the SHTF at least they won't come after you and your debt ....let alone your savings !
This is interesting. If I look at one roof suburb data, the 2 suburbs we are actively looking in at present are seeing big decreases in the avg price over the past quarter (-10%). Particularly if you select 3 bdrm only. I'm also noticing a shift in agent behavior, from saying last 6 months. I am now being chased by the agents for 'feedback' for every house visit & also for auction participation. Agents are now chasing sales.
Assumes the one roof data/insight tool is accurate of course & obviously some anecdotal comments above.
I think a lot depends on the type of property being sold. Lots of people are cashing up mix housing sections which seem to go for moon beams at the moment. I've also seen a few nice properties round here pass in for what I consider good money, so people also trying it on & only selling if they get unicorns.
That money is flowing to premium sections or beach areas etc?
Still I'd also not say that sales volumes are particularly high at the moment, it needs to be viewed as a combined average for the last 2 years.
Funny times. This could go anywhere.
What suburbs you looking at with a 10% decrease, I'll go buy something there.
Have a look at the One Roof suburb profiles. Start randomly select a few suburbs and play around with the filters.
As an example, select Howick, residential dwelling, 3 bed, last 3 years. Same for Half Moon Bay, NorthPark & few other eastern suburbs. I think its people off-loading rentals. Incidentally Places like Mellons Bay, Beachlands, Shelly Park (Beachy, more desirable etc) are holding and increasing.
Not to say that that its not still uniformly very expensive, and I'm sure it will still cost 5 billion dollars to buy a house in Mt Eden. But its not as simple as saying all prices are uniformly increasing 20% & that money scramble has put money in the hands of certain people with certain wants.
I think premium suburbs and houses are attracting big bids, people are using this money to upgrade, or downsize to a nicer area & that is screwing the perception somewhat.
Assumes of course the OR data is accurate & Meaningful.
Tempted on the 'I told you so' but I'll pass this for something more fantastic later.
Look at this chart to see for yourself how much money was printed and realise that your hard earned money sitting in the bank will eventually depreciate like rolls of dunny paper.
If you're a net saver or retiree, it's not whether you will or when, but it's coming hard and fast that you will be wiped if you have money sitting in the banks. Just monitor your familiar retail prices and see for yourself.
Secure your hard earned money today with a real estate, no one can print them.
Forget any meaningful interest rates rises, it'll be eons away and there's no point receiving interests or dividends when you're already in the grave.
Be quick- time is the essence.
CWBW
Your comment yesterday in particular was correct . . . despite the backlash.
What some don't seem to appreciate this is consistent with what RBNZ, Treasury and Robertson have stated for this year . . . a cooling (not falling) of the market this year and 2 to 3% for the following two years.
If I was a FHB, I would be taking note of RBNZ, Treasury and Robertson as they have some influence on the market.
The reality is that if RBNZ et al. are correct, then that $800,000 FHB property is likely to be $40,000 to $80,000 more expensive this time next year . . . and I wouldn't be silly enough to live simply in hope that is not going to happen.
Feel free to correct me if I'm wrong, but the Treasury and the RBNZ predicted
Brock
Quick check:
RBNZ: "In its latest Monetary Policy Statement the Reserve Bank is forecasting a house price inflation peak of 22.4% in June this year before falling to 10.2% by the end of the year" 24 Feb 2021; https://www.interest.co.nz/property/109218/its-latest-monetary-policy-s…
ASB: "After a 27 per cent gain in the past year, house prices were expected to notch up a gain of 10 per cent by the end of this year, and 5 per cent by the end of 2022, said ASB chief economist Nick Tuffley". June 11 2021 https://www.stuff.co.nz/business/industries/125401692/no-house-price-fa…
I wouldn't be backing subdued prices let alone a fall over the next year.
Which effectively means they're expecting no or low price increases in the second half of the year as much of that 10.2% has already occured.
On that basis these are the more relevant sentences from the monetary policy statement:
"And then by March 2022 the RBNZ reckons annual house price inflation will be running at just 3.9%.
House price gains of between 2.6% and 5.6% are then forecast for the remainder of the projection period up to March 2024."
Same people forecast a crash when covid hit.
I think you will find that most of us that forecast a crash (including the banks and pretty much every economist) did so before the government and RBNZ decided to intervene in a set of completely farcical policies which basically threw a currency money scramble while de-risking all lending and throwing away any semblance of moral hazard. Actually worse than that, they have encouraged people into moral hazard which they have to now support. Frankly I am surprised prices didn't go up by 50%, considering all that they have done.
Quick to dump rates on speculation of a disaster but slow to increase them in the face of actual data.
Yeah those are 12-month rolling averages. The forecasts (right or wrong) are for effectively zero average house price inflation for the remainder of this year and the first half of the next.
I would have thought somebody as astute as you would take more care with the facts. Take a step back and think about what you are doing attempting to goad people who cannot really afford it into taking huge financial risks based on your incorrect reckons.
If (and that's a big if) these forecasts are to be believed, the very last thing a FHB buyer should do is rush out and buy anything from the very limited stock of dogsh*t on the market right now.
Its really quite insane isn't it.
Yes it absolutely is. I cannot imagine how hard it would be for someone saving hard for a deposit to see the prices of properties increase by more that you earn gross, let alone net. I feel most for those who have dependents here in NZ and are unable to move. Everyone else who can move and wants to own their own home needs to move to Australia.
4 bedroom homes under $800K NZD in Greater Auckland.
https://www.trademe.co.nz/a/property/residential/sale/auckland/search?b…
4 bedroom homes under $750k AUD in Greater Brisbane.
https://www.realestate.com.au/buy/with-4-bedrooms-between-0-750000-in-b…
A quick browse through your Trademe search, not many with prices LoL.
There's this one for $675k, according to picture 3 you need to bring your own pantry and set it up in the dining room. Comes complete with internal aluminium windows for bedroom 4 because they couldn't put them on the outside wall.
https://www.trademe.co.nz/a/property/residential/sale/auckland/manukau-…
Oh look most of those are houses for removal or high leasehold or and this is funny many are over 2 hours out of Auckland.
Or try this one "Experienced Investor Clients the opportunity to purchase off the plans homes at a significantly discounted price. The deposit that it required is generally $175,000 and the discounts on the price are around $100,000.
The deposits are released to the Developer early (before settlement) and are used to assist in the further progression of the development project.
This is a rare opportunity and offers a significant upside for the Investor."
Brock
You ever do any work? It just seems you are on interest.co all day. :)
Perhaps it just seems that way because I live rent free inside your head. :)
Brock
That’s fine . . . . but lost my hair quite a few years ago so don’t try starting with this new insulation requirements b*llocks.
You have a great day. :)
Maybe... but they have crocodiles and snakes and baby stealing dingo's there. Its not all unicorns and roses. Plus family ties are important also. Not everyone can make that work.
Personally If I was starting (say mid-late 20's) & didn't have help from mum/dad, I would buy a rental now & accept I'd be renting for the next 10 years. Buy any rental in NZ that nets yields more than 3.5%, pay that debt go from there.
People in NZ put a lot of faith in the central banking gods & general markets, but it won't be in our hands if the market tanks, most likely it will be global drivers and there will be sweet f all we can do about.
Kiwis like to think we are super important on the global stage, but the reality is we are an overgrown farming town & a drop in the bucket of global finances.
All you know at this point is that the fundamentals are broken & central banks are making it up as it goes.
Buy a rental in your mid 20s? Good luck in someone in their mid 20s getting a deposit for that
That's what parents are for these days
Thank you TTP v0.3
Interest rate rises will be here sooner than we think. It doesn't matter what the Reserve Bank set the OCR to be. And that's when things will get interesting. A) for heavily leveraged borrowers and B) for businesses relying on enough people to have discretionary income.
Also, don't forget about all the other lending-related regulatory measures coming through the pipeline.....
Yes, but I don't think the increases will be that big.
Plus it's highly likely that there will be a financial/ economic event in the next 2-3 years that pushes them down again.
I think low / low-ish rates are with us for quite a while
The perceived increase will be as per the MSM spin.
Playing it down, an increase to .5% is a .25% increase. Spinning it badly would be to pass it off as a 100 % increase in the OCR.
Expect another covid lockdown to prevent the young educated from escaping the zoo/people farm of NZ.
They are happy to see the price increase to help the economy, and also happy to wait and see to help the FHB
According to the RBNZ C31, investor lending peaked at 4793 # of borrowers in March and dropped to 3,298 in May, or 12% of all borrowers in a month (not seen since a brief 4 month period in 2018).
Put into perspective, July to Dec 2020 they were 17%. Jan - Feb 16%. March 15%, April 14%, May 12%. See the trend? It's not seasonal, as every "May" since 2014 shows either a stable share or a peak share in investor lending.
The Housing Market is Cooked.
Move On.
Absolutely !
That was always the plan Zac ....to completely overcook the housing market ......... then interest rates rise ........salaries don't go up........rents can't rise to keep pace......investors sell as can't afford the mortgage ..........then down she goes down like a ton of bricks ....but Ms Smiley et al can just blame it all on covid .....and then get reelected in 2023 ......and therein lies the problem.....
Hahaha apart from forgetting all the fundamentals, you remember 2014/2016 when interest rates were 5%type stuff?? The market was still hot, if interest rates double, unlikely for another 3 years or so, it's not going to crash like you think/hope, the show goes on. That's life, either get on or get left behind
Yes, the market was hot with interest rates at 5%, but it doesn't follow that it would be hot again if interest rates got back there.
The change in circumstances being the subsequent pop in prices off the back of rates dropping from ~5% -> ~2%. Reversing that journey is likely to cause some pain. If interest rates are 5%, who's going to invest in Auckland property with a 2-3% yield?
Disagree. Anyone who discounts the probability of an epic crash is a moron.
Anyone who believes a financial market CANNOT crash, is miss-guided.
For all you know a great correction bigger than 1929 is about to occur.
Stop trolling. You do not know a 'correction' bigger than that of 1929 is going to happen.
Luke83 .....what "fundamentals" .....the whole property market is rigged for people who already have one or more property, as these are the ones that find it easy to buy at these prices, with interest rates being so low only helping them.
Your "either get on or get left behind" comment just reeks of "c'mon just get in, buy and mortgage yourself to the absolute hilt" so YOUR precious property portfolio keeps its "value".
True, interest rates rises may not affect you at all - you may have no or little debt on your properties ? .....but believe me, to think they won't affect others is truly ignorant.
I do have debt, plenty of it but on my own home that I have worked my ass off for. Interest rates will rise, house prices will go flat/ a small fall sometime in the next year or so, but covid has made nz a destination to live in. The world markets can crash as they did not that long ago however you will see our market is very resilient. As far as investing goes, property is a safe (ish) bet. So it will remain a source of safe money dumping for many years to come,. And who the hell invests in property with a 2% yield, terrible number
Markets and Market Conditions can stay irrational longer than most can stay solvent.
More interested in commodities, cryptos, selective stocks and KiwiSaver myself [maybe Silver/Gold at the right re-entry point]. The more of these things you own, the more options you'll have: .. start a business, buy a house outright, travel, relocate to other countries.
I rent in Christchurch and it-is-what-it-is. Dwelling on house prices will only demotivate and cause people to become unproductive, broke, homeless and begging the State for accommodations.
I'll respect the government and its authority because I'm not a Marxist. If the government becomes totalitarian or if for some reason I find myself having to move in ChCh, with no acceptable rentals on-the-market - I have the means to relocate to Australia, at will; though I did just realize my passport has expired, so need to get onto that one lol.. just in case.
You wouldn't go to the Labour Party to deliver a baby, why would you expect them to deliver affordable housing? It's like those people whom believe the Boomer Bridge (no offence, just don't know the Bridge's name) in Auckland will be delivered.
The Market in Cooked.
Move on with your life.
Don't bite in and get a burnt mouth. NZ will vote how NZ votes. Best to make work your friend and not become a political malcontent. I won't be visiting the gulags myself.
Pretty much. The only party whose prime focus was to correct housing was TOP with their proposed tax base change. Simply not enough people party voted for it so it remains only an idea. Universal land tax if very difficult to avoid and would directly target unproductive landbank based speculation, with a side note of lower tax burden (paye) on workers.
All others parties have talked big and achieved very little. One could say the biggest the pre election talk, the bigger the house prices rises have been. Aka all lies.
Property Investor's have taken nation to hostage by capturing commodity of basic need (housing).
It doesn't matter whether there is any govt. in NZ or not, no one can control this lawlessness in regard to property market.
AJ it is possible only because has support of Orr and Jacinda, otherwise not hard to curb speculators by baning interest only loan. Even DTI was just spoken to divert attention.....
https://www.nzherald.co.nz/business/auckland-house-prices-stubbornly-hi…
Still WAIT N WATCH Mr Orr and Jacinda Arden - The messiah to solve housing crisis.
This is expected when RBNZ prints money as if there is no tomorrow. Anyone keeping cash has the value of their money deflated by 15-20%.
On top of it NZ already has a shortage of houses and then reducing OCR to a value which is like putting blood in front of killer whales. What do you think is going to happen. How intelligent are RBNZ and current politicians.
Good to see everyone's completely ignored the wining and gnashing of teeth from Grant Robinson and the reserve bank and carried on, business as usual. Who are they going to march out and shoot next ? Foreign investors, local investors, developers, normal property owners ???? Personally I think rising house prices is a good thing, we are all collectively richer. Australia do it this way and are one of the richest nations per capita in the world with high house prices.
I thought the market peaked in early Feb due to the aligning of planets? Mirk Kirk et al????? The DGM's lose again. Almost feel bad for them.
"However the total volume of homes Barfoot & Thompson had available for sale at the end of June was the lowest for any month since January 2016."
Why's hardly anyone selling when prices are sky high? Is there going to be a rush of properties onto the market come spring/summer?
Surely not everyone is an investor...or are most kiwis now with their new found equity...
Many people probably aren't selling because prices are still rising and are likely to continue to do so.
The market will correct one of these days but forecasting when is a mug's game.
Most economists have been predicting prices flat lining with interest rates rising. I guess greed takes over and people get 'left short' exiting too late.
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