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Eva Corlett, Housing reporter
House sales could grind to a halt as a recession from the coronavirus outbreak edges closer.
Economists and real estate agents are predicting a drop in prices and sales over the next six months as social distancing makes transactions harder and banks become more risk averse with lending.
ASB has predicted house prices will drop 0.5 percent in the next quarter and 1 percent the following.
Overall house price growth is forecast to be zero by March next year, instead of 5.3 percent as previously expected.
And banks have lowered floating interest rates, following the Reserve Bank’s move to drop the official cash rate.
It would be easy to think the notoriously over-heated housing market could tip in favour of buyers.
But the chief executive of Real Estate Institute New Zealand, Bindi Norwell, expects home-owners will hold off selling.
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