NZ: House sales have been flat but oscillating - ANZ
|Liz Kendall, senior economist at ANZ, notes that New Zealand’s REINZ house sales increased 14% m/m in January (sa, ANZ estimate), reflecting some continuation of recent data volatility, with perhaps a small bump from the RBNZ’s relaxation of loan-to-value ratio restrictions.
Key Quotes
“Overall, sales have been flat but oscillating, to be 1% lower than a year ago (3mma). House prices rose 0.3% m/m, with annual growth tracking at 3.1% y/y.”
“Auckland weakness continues, with prices down 2% over the past year. Looking forward, we expect continued gentle moderation in price pressures, with headwinds weighing on the market.”
“Affordability constraints are being felt and investors are wary, especially with the longer-term prospect of a capital gains tax looming. Credit availability does not appear to be a particular constraint, though proposed changes in bank capital requirements will likely weigh if implemented.”
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.