PHOTO: Property Crash in New Zealand

Property Noise Group – OPINION PIECE 1 January, 2019

Via our extensive research and through our aggregation of Property News both in New Zealand & Australia – we believe we have developed a solid understanding of the property markets

  • Firstly – what amazes us is how many people think boom time will continue because we have an under supply of housing in NZ
  • Australia is going through a major property market correction – as a result of banks tightening their lending, this will come to New Zealand
  • There is a Global Financial Crisis on the horizon and this will effect us massively
  • New Zealand is an overpriced real estate market that has no future in climbing in price year after year
  • Interest Rates – they will rise and when it does those first home buyers in Auckland who took out $800,000 plus mortgages – will suffer
  • Mortgage Debt – this is a crisis in NZ & Australia.
  • Look for Mortgagee Sales  to increase significantly in 2019 – even without mortgage interest rates increasing much
  • There will be less KiwiSaver First Home Buyers in the market in 2019 – due to their KiwiSaver funds taking a hammering – delaying their entry into the property market
  • REINZ….. in their review of 2018 state:

Bindi Norwell, Chief Executive at REINZ says: “The 2018 property market has been dominated by a number of key themes including:

  1. The ‘foreign buyer ban’ which came into effect on 22 October and whether that would impact the house prices across the country.
  2. the stabilisation of pricing in the Auckland market which has hovered around the $850,000 for 21 months now
  3. The strength of the regions in terms of price growth
  4. The increased spotlight on the property management industry with the ban on letting fees and a number of industry players, including REINZ, calling for regulation
  5. The continued difficulty first time buyers face to get a foot on the property ladder particularly with the length of time it takes to save for a deposit and rising house prices.

In our opinion these points above will continue to provide impact in 2019 – however with the exception that we see the regions falling off on price growth considerably

 

  •  Our previous thoughts on the property markets can be viewed below;

Our Latest Thoughts On Property

Will the New Zealand Real Estate Market Crash in 2018/19?

Will the Australian Property Crash come to New Zealand?

 

 

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