Sharechat Logo

2017 uncertain for house prices, with mixed expert views

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

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ farm sales fall 11% in March quarter as mycoplasma bovis keeps farmers nervous
NXT-listed QEX Logistics says annual gross margins wider than anticipated
High Court orders Forestlands IRD debt can be paid from $18M funds in trust; liquidation sought by FMA
April 23rd Morning Report
NZ dollar falls near 72 US cts as growing inflationary pressures drive up US Treasury yields
World Week Ahead: Gearing up for tech earnings
MARKET CLOSE: NZ shares fall as MSCI changes debated, Mercury falls, Fletcher gains
NZ dollar heads for 1.6% weekly fall as greenback finds favour on rate hike view
FMA keeping close tabs on Australian Royal Commission as AMP chief Meller departs
NZ's R&D tax incentive plan viewed as positive by business

IRG See IRG research reports