While NZ property prices might go in one direction (in this case, down) … parts of NZ can go in the other direction (in the case of Hurunui, they’ve gone up).
The same is true when it comes to the bottom of the market. NZ as a whole is on the up. But some parts are still falling.
Both statements can both be true.
“...a tiny blip up from the bottom doesn’t indicate house prices increase.”
Matt also sent me:
“ Morning. In precisely ZERO other industries would any group of co-opted organisations attempt to delude themselves like this.”
“A tiny blip up from the bottom indicates that “the downturn is over, we’ve hit the bottom, prices are on the increase!” etc etc” … “considering that property in NZ is the most over priced in the western world, and the least affordable it’s ever been – I doubt it.”
[I’ve condensed this down because it was long.]
Matt’s right. Property prices are up only 1.1% compared to where I think the bottom was.
It is a ‘blip’.
But here’s the thing. You can only see the bottom of the market once it’s over.
Back in 2008, property prices bottomed out in December 2008.
But if you were an investor trying to buy a property 2 months later, here is what you would have seen: