RBNZ's Conway: Fundamentals that determine sustainable house prices may be changing
|The Reserve Bank of New Zealand's chief economist Paul Conway said the tide may well have turned against housing being a one-way bet for a generation of kiwis.
These comments come in the RBNZ's speech on housing, titled “Housing (still) matters – the big picture”.
Analysts at ANZ bank explained that ''despite the focus on taming inflation, housing is still a key part of the economic outlook.''
Key quotes from Conway
Immigration is unlikely to return quickly to pre-pandemic levels, contributing to slower population growth overall.
Longer-term, fundamentals that determine sustainable house prices may be changing.
Meanwhile, the analysts at ANZ Bank said ''In our latest Property Focus, we outline our forecast for a 6% fall in residential investment over 2023 as interest rate hikes really start to take the heat out of the economy. The RBNZ will need to watch the housing market and construction industry carefully to make sure they aren’t overdoing it on interest rate hikes – although that’s not easy in this uncertain environment.''
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