After a short hiatus and a 5%-10% fall in house prices, I’m going out on a limb given the current market pessimism and predicting we will stretch into what might be the last great housing boom. Here's why.
The Reserve Bank of New Zealand has announced a proposal to remove loan-to-value-ratio (LVR) restrictions and it could be a game changer for the housing market, especially those who are trying to get into their first home.
This article is split into two sections. We’ll first explore the supply and demand issues, and secondly get into some tips and tricks to consider. So, what drives the housing market and what does that mean post COVID-19?
Interest rates are still low and the housing market seems to be thawing out after a slow 2019. That said, the latest uncertainty comes in the form of Coronavirus and what impact it could have on the economy. Here's a roundup of our views.
During the global financial crisis, eternal optimists always looked for green shoots. There’s no better time to look for green shoots than spring, so what’s going on?
For the past thirty years there has been a strong correlation between property prices and interest rates. As interest rates fall, property prices go up. So, as interest rates continue to fall, property prices could potentially increase further. My view is that won’t happen.
It’s easy to get caught up in the news headlines and neighbourhood chatter about what’s happening in the property market. Everyone you know will have an opinion on whether you’re better off buying your first home or continuing to rent, and it can be hard to sort fact from fiction.
This article is written for prospective homebuyers, but it is also an important reference point for leaky owners trying to sell. Plaster houses are harder to sell and will sell for 10%-15% below what an equivalent weatherboard house would sell for.
As any developer will know, banks across New Zealand have dropped a couple of belt sizes in the recent years. They’ve moved rapidly from the binge eating of the 5 or so years between 2011 and 2016 straight onto the no-sugar diet. Let’s just hope it doesn’t lead to a sugar crash!
When prices are going up, everyone seems happy to pay ever increasing prices and nobody questions whether or not it is a good time to buy. Conversely, when prices are falling everyone sits on the fence waiting for the market to pick up.
Housing markets typically move in cycles – often referenced as the ‘property clock.’ Anyone with an interest in property sits around guessing what time it is. If you observed the clock over the past thirty years, it has largely worked out, but right now reading the property clock is getting harder.
Sydney has had a decline of 9.50% in property prices since they peaked in July last year, and Melbourne is not far behind with a drop of 5.80%. Technically anything more than 5% is considered a crash, so are Australian house prices really crashing and should we be worried in New Zealand?