A CoreLogic report says property values could rise again next year
The number of valuations run by banks, considering issuing loans confirmed in winter, had been bleak for the property market and the drop in turnover have continued through August.
“The already strong drop in sales volumes combined with market activity now ambling along at seasonally low levels up to 30% below last winter tells us the market slowdown remains,” CoreLogic head of research in New Zealand Nick Goodall told Fairfax Media.
“Property value change is variable too, with some areas of New Zealand now showing value decreases,” Goodall said.
Loan-to-value restrictions, leadership changes and variable poll results all add up to the anticipated prolonged slowdown in the property market lasting towards the end of 2017, Goodall said.
According to the Fairfax article, Goodall said there is a large supply and demand imbalance in the creation of new housing stock for a growing population.
In the year ended in June, a total of 30,538 home consents issued. This accounts for an estimated 65,952 people to be housed – however the population increased by 100,500 people.
Goodall said the imbalance is something that is expected to hold prices up over the long term, with prices expected to rise through next year.
The only way that imbalance would not have an effect was if supply no longer mattered – if the market adjusted to the current number of dwellings, or if the new population coming into New Zealand are people who are willing to live with more people per household, Goodall said.
“Ultimately however, even after taking affordability concerns in Auckland and elsewhere into account, strong fundamentals - including a positive economic outlook - remain. Property values could therefore rise again in the New Year: albeit at a more modest pace than the previous two,” Goodall told Fairfax.
Related stories:
Auckland housing market unlikely to pick up until spring
Property investors with cash are the only group growing
“The already strong drop in sales volumes combined with market activity now ambling along at seasonally low levels up to 30% below last winter tells us the market slowdown remains,” CoreLogic head of research in New Zealand Nick Goodall told Fairfax Media.
“Property value change is variable too, with some areas of New Zealand now showing value decreases,” Goodall said.
Loan-to-value restrictions, leadership changes and variable poll results all add up to the anticipated prolonged slowdown in the property market lasting towards the end of 2017, Goodall said.
According to the Fairfax article, Goodall said there is a large supply and demand imbalance in the creation of new housing stock for a growing population.
In the year ended in June, a total of 30,538 home consents issued. This accounts for an estimated 65,952 people to be housed – however the population increased by 100,500 people.
Goodall said the imbalance is something that is expected to hold prices up over the long term, with prices expected to rise through next year.
The only way that imbalance would not have an effect was if supply no longer mattered – if the market adjusted to the current number of dwellings, or if the new population coming into New Zealand are people who are willing to live with more people per household, Goodall said.
“Ultimately however, even after taking affordability concerns in Auckland and elsewhere into account, strong fundamentals - including a positive economic outlook - remain. Property values could therefore rise again in the New Year: albeit at a more modest pace than the previous two,” Goodall told Fairfax.
Related stories:
Auckland housing market unlikely to pick up until spring
Property investors with cash are the only group growing
