'Careful balance' for property market
In its latest Property Focus report, four of the ten property gauges used by the bank point to prices going down: Affordability, serviceability and indebtedness, migration and globalization.
In comparison, there are five things putting upwards pressure on prices: Interest rates, the supply-demand balance, consents and house sales, housing supply and median rent.
The ANZ economists note that prices are moving up faster than incomes, which reduces affordability, and that households’ attempts to reduce debt continue, although at a more moderate pace than has been seen over the past couple of years.
Migration was still in negative territory, with more people leaving the country in a year than moving here, but signs point to that changing, especially in Canterbury.
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