I cant imagine that prosperity in Whanganui or Gisborne spiked last year enabling lots of people in these regions to massively boost house inflation by trading houses amongst each other. So sales coming from Auckland migrants (some returning people from COVID locations), and (my guess) mostly investors looking for rental yield due to cheap bank loans. the first home buyers in Whangaui and Gisborne end up not buying but paying investors mortgages. The upward cycle on this is limitless, as renters pay investors equity and investors reinvest in further inflation of their asset class. Its so obvious that there will be no intervention from govt or RBNZ, this will be a collateral damage situation. the govt and RBNZ rate consumption above the house inflation issue, so we will see long run low interest. NZ's real problem will create more issues next couple of years, low productivity and low income growth, lower than average company profits! Once COVID is manageable in the world, other countries will enter a boom, the new shoots of which are emerging all other the world, and NZ will not as we sat back bought houses and "stayed too safe"
I cant imagine that prosperity in Whanganui or Gisborne spiked last year enabling lots of people in these regions to massively boost house inflation by trading houses amongst each other. So sales coming from Auckland migrants (some returning people from COVID locations), and (my guess) mostly investors looking for rental yield due to cheap bank loans. the first home buyers in Whangaui and Gisborne end up not buying but paying investors mortgages. The upward cycle on this is limitless, as renters pay investors equity and investors reinvest in further inflation of their asset class. Its so obvious that there will be no intervention from govt or RBNZ, this will be a collateral damage situation. the govt and RBNZ rate consumption above the house inflation issue, so we will see long run low interest. NZ's real problem will create more issues next couple of years, low productivity and low income growth, lower than average company profits! Once COVID is manageable in the world, other countries will enter a boom, the new shoots of which are emerging all other the world, and NZ will not as we sat back bought houses and "stayed too safe"