NZ: Housing market volatile – ANZ
According to analysts at ANZ, New Zealand’s housing market continues to experience volatility and it will take some time to gauge where the trend is setting.
“While we may see a little more strength in the short term, we expect this will be short-lived. The RBNZ will ease loan-to-value ratio restrictions in January, which will provide a boost, though it is not expected to be large. And interest rates remain low, with recent declines in mortgage rates expected to provide a lift.”
“Population growth also remains supportive, but pent-up demand is not building as it once was. And importantly, headwinds are acting on the market, including bank prudence, investor wariness and affordability constraints – and these are expected to see the market remain contained. A more challenging outlook for credit in light of proposed increases in capital requirements may also weigh, if implemented.”