{"id":25899,"date":"2020-06-23T12:42:57","date_gmt":"2020-06-23T00:42:57","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=25899"},"modified":"2020-06-23T12:42:57","modified_gmt":"2020-06-23T00:42:57","slug":"new-zealand-house-prices-to-fall-anz","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/new-zealand-house-prices-to-fall-anz\/","title":{"rendered":"New Zealand house prices to fall | ANZ"},"content":{"rendered":"

PHOTO: ANZ Property Focus<\/strong><\/p>\n

We have nudged up our house price forecasts on the back of a slightly better economic outlook and lower mortgage rates, but only slightly. We expect that
\nhouse prices will fall 12% (only a little above our previous forecast of 13\u00bd%), but risks are now considered more balanced.<\/p>\n

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\"Biggs<\/a><\/div>\n
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Biggs divorce case starts, husband accused of \u2018dragging the chain\u2019 on $700k payout<\/a><\/h2>\n<\/header>\n<\/div>\n

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House prices<\/a> often fall in economic downturns, especially in real terms (that is, adjusted for how much other prices have increased). This downturn is
\nexpected to be no different, though we\u2019d discount the impact of the initial fall in GDP due to the lockdown, as this reflects imposed constraints on activity rather
\nthan individual economic choices.<\/p>\n

Both people\u2019s willingness and ability to pay for houses will be affected by the economic downturn<\/a>. Firm revenue and household income expectations will be
\nlower, while unemployment and business failure rates are expected to increase. Some homeowners will experience job losses and financial distress.<\/p>\n

Uncertainty is huge, and households and firms are expected to be cautious, including when it comes to taking on debt.<\/p><\/blockquote>\n

READ MORE VIA ANZ<\/a><\/p>\n

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