Housing report: Why the housing outlook for 2010 is cloudy and dark

Bernard Hickey delivers a housing report in association with BNZ on the outlook for the housing market for 2010.

It's worth looking at the outlook in the wake of some interesting numbers for December and January.

Realestate.co.nz reports listings fell in January for the first time in years and listing prices also fell. Meanwhile, mortgagee sales remain high and are expected to stay high for the rest of 2010. The leading indicator of the market from Infometrics and Mike Pero Mortgages' shows a downturn for the first time in almost two years.

Bank lending is also weak. The combination of weak bank lending growth, tighter bank lending criteria, high interest rates and uncertainty about the tax system ahead of the May 20 budget is restricting both demand and supply. This will keep a lid on house prices through 2010.

Category:

News & Politics

Tags:

• Bernard Hickey
• NZ housing market

[waldentree]

"running out of breath" lol

prepare for prolonged throttling

[fluentread]

Excellent news .

[ukulelectric]

House Prices will continue to increase while the Reserve Bank targets 1-3% inflation, while demand for scarce resources in the world increases and while councils artificially restrict land supply.