The Reserve Bank of New Zealand (RBNZ) leaving the official cash rate (OCR) unchanged at 5.5% will have surprised very few people, but it has hinted at when interest rates might start to fall, CoreLogic Chief Economist Kelvin Davidson observes The decision itself and the associated forecasts as part of its full Monetary Policy Statement had a distinct sense of ‘we’ve been here before’ – with the anticipated tracks for GDP growth (subdued), unemployment (edging upwards), and inflation (slowly falling) largely unchanged from last time the RBNZ published their full forecasts on 24th May. Continue →

More competitive prices and a ‘get in now’ attitude is bringing more buyers out ahead of this year’s election, but a potential change in Government and ongoing tighter economic conditions are seeing sellers holding back, REINZ Chief Executive Jen Baird says The Real Estate Institute of New Zealand’s (REINZ) July 2023 figures show more activity emerging while listing numbers remain low seeing total stock numbers fall and some regions have seen little movement in median prices. Continue →

Relocating owner-occupiers, or ‘movers’, have been relatively inactive over the past year or so, with upsizing, downsizing, and ‘new to area’ moves all drifting lower, CoreLogic Chief Economist Kelvin Davidson observes The CoreLogic Buyer Classification figures suggest there’s perhaps been less of a COVID-driven hunt for extra space going on than might have been perceived. Continue →

Compared to this time last year, there has been a noticeable increase in sales in the residential property market, though the number of new listings is lagging, new REINZ figures show The Real Estate Institute of New Zealand’s (REINZ) June 2023 figures show a renewed level of activity emerging.  Continue →

Declining home values continue to soften in many parts of New Zealand, yet QV says we are likely to see that rate of reduction both leap and fall in the coming months as a result of reduced sales activity The QV House Price Index for June 2023 shows the average home decreased in value by 1.8% nationally this quarter, a smaller rate of decline from the 3.4% decrease in quarterly value change experienced back in May. Continue →

Property transaction volumes have turned a corner, after consecutive interest rate hikes and tighter lending rules triggered New Zealand’s largest sales slump since 1983, CoreLogic Chief Economist Kelvin Davidson says CoreLogic NZ’s Monthly Housing Chart Pack shows a 7.5% increase in residential sales numbers (via estate agents and private transactions) occurred in May compared to the same time last year. Continue →

As we head into the winter months, we are seeing glimpses of positivity, especially in the regions following the Reserve Bank’s announcement of easing loan-to-value restrictions and the stabilising of interest rates, REINZ Chief Executive Jen Baird says The Real Estate Institute of New Zealand’s (REINZ) May 2023 figures show an increase in sales counts in some parts of the country while buyers and sellers in other parts continue to wait. Continue →

The Reserve Bank’s easing of LVR restrictions is already seeing more first-home buyers making enquiries with banks and brokers, says Tim Kearins, Owner of Century 21 New Zealand As of 1 June, loan-to-value ratio (LVR) limits on lending to owner-occupier borrowers with less than a 20 percent deposit have been loosened and property investors are allowed to have a lower deposit. Continue →

The decline in residential sales activity is being played out in the neighbouring lifestyle property markets across much of New Zealand, with sales volumes falling from the previous highs of 2021 and 2022, REINZ Rural Spokesman Shane O’Brien says Data released by the Real Estate Institute of New Zealand (REINZ) shows there were 100 more lifestyle property sales (8.7%) for the three months ended April 2023 than for the three months ended March 2023. Continue →

Following another decrease in New Zealand’s median property price last month, first home buyers are starting to come out of the woodwork with the easing of LVR restrictions just around the corner REINZ’s Monthly Property Report for April saw median prices across New Zealand decrease 10.9% year-on-year to $780,000. Continue →

While the residential property downturn looks to be nearing its end in some areas, it is still gaining momentum in others, the latest QV House Price Index shows Values have reduced by an average of 4.5% throughout the first four months of 2023, including an average reduction of 0.6% in the month of April – a marked improvement on the 1.4% average decline recorded back in March. Continue →

Patience is essential for both buyers and sellers, with the latest data from realestate.co.nz Continue →

Loan-to-value ratio (LVR) restrictions put a ‘speed limit’ on how much new low-deposit lending banks can do, but the current settings were put in place back in November 2021 when risks were elevated LVR restrictions, imposed by the Reserve Bank of New Zealand, aim to promote financial stability by limiting high-risk mortgage lending. Continue →

The stabilisation of mortgage rates is one of several market indicators signalling a possible end to the country’s extended property downturn, CoreLogic NZ Chief Property Economist Kelvin Davidson says Despite further house price falls in March, subdued property activity levels and early April’s 50 basis point cash rate hike, CoreLogic’s Monthly Housing Chart Pack shows the market fundamentals are not as weak as they have been. Continue →

While REINZ’s March 2023 report finds median prices and sales counts are easing and properties are taking longer to sell, this is not the case across the entire country, Chief Executive Jen Baird says Nationally, the median price decreased 12.9% annually to $775,000 in March 2023. Continue →

While a 0.5% increase to the official cash rate (OCR) came as a surprise to some, taking it to 5.25% – its highest level since 2008, others say it is still workable CoreLogic Chief Economist Kelvin Davidson says the increase was larger than he and many other commentators had been anticipating, but it reflects the Reserve Bank’s (RBNZ) continued concerns about inflation. Continue →

The impact of ongoing economic headwinds and Cyclone Gabrielle is reflected in REINZ’s latest figures, but some data returns to ‘normal’ amidst a big clean-up job across the upper north and eastern North Island The Real Estate Institute of New Zealand’s (REINZ) February 2023 figures show a lesser rate of decline in annual median prices and sales counts, with stock levels returning to normal levels. Continue →

A quarter of landlords put up rents in the six months before May 2022, and one of the big reasons for this was increased costs lumped on by the Government, a survey commissioned by the Ministry of Housing and Urban Development finds As a result of Government policy changes in 2021, landlords are no longer being able to claim their full interest costs as an expense.  Continue →

More people are losing money on the resale of their properties than any time in the past three years, especially those selling apartments, CoreLogic NZ’s Chief Property Economist Kelvin Davidson says The CoreLogic NZ Q4 Pain & Gain report shows 4% of property sold in the final three months of last year went for a price less than originally paid. Continue →

House prices are continuing to ease as we enter 2023, though the pace of the decline is steadying and the market has glimpses of a new life, REINZ’s January data indicates “January is traditionally a slower month as sellers and buyers are on holiday,” REINZ Chief Executive, Jen Baird says. Continue →