2017…. is 8 years on from our last Real Estate Market Crash. Time for another one?
Over the year plus we have suggested that a market correction is well over due. The Auckland real estate market is “was nuts” – and that simply could not continue for a number of reasons. the reason we have yet to see a correction is:
a) LOW OCR and thus Mortgage Interest Rates
b) Positive net Migration
c) Fairly stable job market and economy
b) US FED Reserve rates not rising
2017, will see a correction in our humble opinion. Mortgage Interest rates will rise and Banks will continue to run with LVR and income Tested lending… protecting themselves. Residential real estate sales will slow and we will see a lift in Mortgagee Sales
Real-time market statistics from realestate.co.nz for the past three months (ending 30 November) show a comparative cooling in demand across the main centres – most noticeably Auckland… this will continue with sales lower in volue than they have been in the last few years
SOURCE: Property Noise NZ
