Before you get out your stopwatches and start trying to time the market, you need to know what their Chief Economist, Yuong Ha, said at the press conference –
“House prices [and] asset prices are notoriously hard to forecast. We have a working assumption or technical projection … that they fall by about 9% over the next 2-3 years. But, you know, time will tell whether that comes to pass.”
The Reserve Bank Governor – Adrian Orr – then chipped in with, “we’re more confident in the direction, rather than the magnitude.”
In other words, they think house prices will drop. But they can’t tell you how much they’ll fall or when the market will bottom out. It’s a technical projection rather than a model you base your property investment decisions on.
So, you can’t just wait for 6.73 months until the “bottom of the market,” just because “that’s what the Reserve Bank’s graph shows”.