CoreLogic reports house values still rose 7.7% in three months to end of May, despite the March 23 tax deductibility 'shock' and the tighter 60% LVR rule for landlords from May 1
I am amazed at the continued optimism from media that somehow houses will magically correct. The influencers of price, (banks, RBNZ, govt) have bet big on houses, clearly at the expense of businesses (example are loans data for house debt vs business loans). The govt strategy (like most things) is to talk the market down. Actually because the whole economy is now conditional on house wealth, NZ is locked in! I think we can expect houses to continue upwards (likely a bit slower) and if their wobble, enough to cause concern at banks, or election issues for labour then watch for more stimulation.
I am amazed at the continued optimism from media that somehow houses will magically correct. The influencers of price, (banks, RBNZ, govt) have bet big on houses, clearly at the expense of businesses (example are loans data for house debt vs business loans). The govt strategy (like most things) is to talk the market down. Actually because the whole economy is now conditional on house wealth, NZ is locked in! I think we can expect houses to continue upwards (likely a bit slower) and if their wobble, enough to cause concern at banks, or election issues for labour then watch for more stimulation.