Covid crisis will impact on market - in time
That’s because recessions almost always produce housing market corrections in New Zealand and this cycle is not expected to be any different, the bank’s latest Home Economics report explains.
But the ill effects of the Covid-19 crisis will take time to filter through to New Zealand’s housing market, ASB senior economist Mike Jones says in the report.
“In part, this is because the housing market went into lockdown in strong shape. But it also reflects the close relationship between the housing market and the labour market, and the fact the deterioration in the latter is mostly a story for the second half of 2020.
“Indeed, over the next six months the winter winds of rising unemployment, reduced job security, slowing population and household income growth are going to blow a little harder.”
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