Bottom of interest cycle reached: ANZ
Its latest Property Focus report shows increasing numbers of factors pushing prices up, including migration and the availability of mortgage funding.
It points out that household debt levels are high but says low interest rates are mitigating the effects of that for the time being. “Mortgage payments as a share of income are now around 40% as opposed to the late 2007 peak of 57%."
House prices nationwide were 7% up on the same time last year, but mortgage servicing as a percentage of disposable income is at a 10-year low.
Of the report’s ten indicators for the direction of house prices, just one is pointing remotely down – globalisation, where New Zealand homes are expensive compared to other markets.
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