Liz Kendall, Senior Economist at ANZ, notes that REINZ housing market data for March point to a broadly stable housing market of NZ.
“National sales volumes fell 4.5% m/m (sa). But looking through monthly volatility, activity is broadly stable, down 0.3% y/y (3-month m.a.). House price inflation is also stable, with prices up 0.5% m/m (sa). Annual house price inflation is running at 3.9% y/y (3-month m.a.), supported by regional price pressures. We expect house price inflation will eventually moderate, with regional divergence expected to continue as the regions play catch up.”
- Sales fell 4.5% in March, but can be volatile on a monthly basis. We would characterise nationwide housing market activity as broadly stable, down 0.3% y/y (3-month m.a.).
- National house prices were up 0.5% m/m in March (sa) to be up 1.5% in the quarter. Our preferred measure of house prices – the REINZ House Price Index (HPI) – is up 3.9% y/y (3-month m.a.).
- We expect house price inflation will gradually moderate. We maintain the view that the market is unlikely to take off due to affordability constraints, credit headwinds and new Government policies. Regional divergence is likely to continue, with regions playing catch up.”
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 securities. 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 Forex 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.