NZ property market set to take off early 2017

NZ property market set to take off early 201722 Nov 2016

As Christmas approaches, BNZ’s Chief Economist Tony Alexander cautions that we’ll see a slowdown in the supply of Auckland houses due to lack of finance available to property developers. However, expect a brighter outlook come the New Year.

Inflation around the world has been lower than expected by practically all of us since 2009 and that has seen interest rates stay at unusually low levels. These low rates have been one of the factors propelling house prices upward. Now things are changing.

What this means is that growth in the supply of dwellings in Auckland will be slowed down through lack of finance to property developers. The upshot will be continued support for already high prices and our ongoing suspicion that come the New Year, the market will speed up again once the immediate effects of the most recent tightening of LVR rules have passed.

For the full article click here