Friday 13th January 2017 |
Text too small? |
If you're not sure about which way the housing market is going to go in 2017, bear in mind the experts remain pretty divided too.
In its housing predictions for 2017 published this morning, the Property Institute, which represents valuers and property managers, suggests it believes housing prices will keep rising.
Ashley Church, chief executive of the Institute said in a statement that the current lull in the Auckland market simply reflects the impositions of restrictions placed on investors by the Reserve Bank in October 2016.
"The continuing gap between demand and supply means that further price inflation is inevitable for the foreseeable future."
The institute says that while price inflation will likely run into double digits, it will still be lower than the highs seen in the last couple of years.
However, this contrasts with ASB's look at the New Zealand economy, which was also published on Friday morning. In it, the bank's economists say they "expect the housing market to glide into a soft landing. While we expect the housing market to cool, housing prices should still have a floor on them."
The most recent data from state-owned valuer, QV, found prices had increased by 12.2 percent in December compared to a year earlier, the slowest rate of growth since January 2015. However, spokesperson Andrea Rush warned that the Auckland market in 2016 had been slow over the summer, before picking up again in March.
Nationally QV said December showed a continuation of the trend of slowing growth in house price values, activity and demand, mainly due to the imposition of lending restrictions on property investors by the Reserve Bank.
BusinessDesk.co.nz
No comments yet
Second St John withdrawal of labour takes effect tomorrow with further strikes likely
Sanford Appoints Independent Director
CRP ADVISES CLOSURE OF SHARE OFFER TO EXISTING INVESTOR
Devon Funds Morning Note - 14 August 2024
OCR 5.25% - Monetary restraint tempered as inflation converges on target
Consumers still need due diligence as new deposit takers emerge.
Woolworths strike: staff asked to dress up in Disney costumes for a week on their own dollar
Turners Invests in Quashed Online Insurance Platform
PGW Reports on Challenging Year
Arvida Announces Executive Team Changes