PHOTO: Property Crash
OPINION: Every now and then we summarise the property market and give our take on where it sits.
Many have been predicting a market correction for some time – including us. In relation to the Property Clock the real estate markets are certainly well overdue for a correction.
The Labour led government have certainly tried to play their part of enforcing a correction, with a Foreign Buyers Ban. But apart from that – they have done nothing else.
The property market continues to grow in value despite our real estate being massively unaffordable. The market is so out of whack that it is now cheaper to BUY than RENT.
Property market finishes 2019 with highest sales volume for December in 3 years
This is how we see it:
1/ The Labour government – has no answer to stopping the rampant property market
2/ The Reserve Bank have no answer either – since they have decided keeping the NZ DOLLAR is more important that property prices going through the roof. They will keep the OCR at record low levels – which will in turn offer cheap mortgage interest rates. The cheapest in our history!
3/ It will take a GLOBAL CRISIS like the 2008 GFC for us to experience a property crash. It won’t come from internal sources as low interest rates/commodity prices/business confidence are all in check and travelling well.