New Zealand housing market peaking - AmpGFX
|Greg Gibbs, Director at Amplifying Global FX Capital, suggests that the New Zealand’s economy may have more momentum than Australia, but there is evidence that its housing market has also peaked.
Key Quotes
“This is likely to reflect the tougher macroprudential measures (lower loan-to-ratio thresholds) implemented since 1 October.”
“The RBNZ said in its Financial Stability Review released on Wednesday that, “The Reserve Bank has asked the Minister of Finance to agree to add a Debt to Income (DTI) tool to the Memorandum of Understanding on macro-prudential policy. While the Bank is not proposing use of such a tool at this time, financial stability risks can build up quickly and restrictions on high-DTI lending could be warranted if housing market imbalances were to deteriorate further.”
“As such, the RBNZ is currently tackling its excessive housing market price growth with aggressive tactics and bringing on more tools to be used if required.”
“The QV house price index slowed from 12.7%y/y in the three-months to October to 12.4%%y/y in the three months to November. The REINZ has reported house sales falling from year-ago levels since July (down 14.2%y/y in October).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.