House prices rose at the fastest pace in 17 years in October according to last week’s REINZ data.
Having initially lauded the housing boom for helping to rescue the recovery, it’s quickly become a headache for the RBNZ, regardless of whether it believes it’s responsible. ASB think it will get worse. The ASB has called for LVR restrictions to be returned and they now will be, in March, with some banks making changes with immediate effect. But ASB suspect this will slow rather than stall house price acceleration. House prices look set to easily eclipse the RBNZ’s latest forecast.
ASB see 1-year and 2-year mortgage rates falling towards 2% over the coming 12 months. Term deposit rates have more downside too.
#assuredproperty #housing #rentals #propertyinvestment