Private Property – our weekly newsletter that gives you insights into what's happening in the NZ property market. Written by managing director Andrew Nicol. Sign up to receive this in your inbox every Thursday.
If you’re looking for a sign that the bottom of the housing market is nearing – here it is.
The Reserve Bank announced that they would increase the OCR from 3.5 to 4.25% yesterday.
Today, much of the media is writing about the central bank’s inflation and interest rate forecasts … and we’ll cover this in next week’s Private Property too.
But more interesting were the bank’s new house price forecasts.
Much of the media coverage focussed on the Reserve Bank’s expectation that house prices would fall 18.9% compared to November’s peak.
While that sounds scary, what’s not mentioned is that two-thirds of these falls have already happened, according to Reserve Bank data.
In other words, we’ve only got a third left to go.